Rise in Earthmover Sales on Construction Boom in Nepal

Demand for heavy construction equipment and machinery has been growing by 25 percent annually with ongoing construction boom and increased development activities in the country, according to the Federation of Construction Associations Nepal (FCAN),

In the first eight months of the current fiscal year 2016-17, according to the statistics of the Department of Transport, Nepal imported 9,751 excavators, dozers, cranes and trucks

The figure represents a steep jump from the 8,328 units imported during the whole of fiscal 2015-16.

All heavy equipment dealers have witnessed good business due to reconstruction works. Excavators, backhoe loaders, dozers, dumpers and cranes are being imported in large numbers,  said Ram Sharan Deuja, general secretary of the FCAN. The annual turnover of the construction machinery sector in Nepal comes to Rs25-30 billion.

Nepal imports heavy equipment from India, China, Korea and other countries.  According to the FCAN, the construction industry in Nepal accounts for around 10 percent of the GDP and consumes about 35 percent of the government budget. An estimated 1 million jobs are being generated by the construction industry.

Dealers said that apart from ongoing projects, planned mega infrastructure projects could push up demand for construction equipment in the coming years.

Sanjeeb Deuja, sales manager of Morang Auto Works Enterprises, the authorised dealer of JCB machines in Nepal said that  they  have been selling JCB equipment in good numbers annually. Equipment and machinery sales are up 45 percent compared to last year.

 According to him, 1,800 heavy duty machines were sold this fiscal year against 1,000 in the last fiscal year. Excavators and backhoe loaders were in great demand. Monthly sales of JCB equipment in Nepal total 300-400 units. The peak earthmover selling season starts in September.

Along with an increase in demand, new heavy equipment brands are also being launched. Komatsu, JCB, Caterpillar Heavy Equipment Liberal, Apollo, Bharat Earth Movers, XCMG and New Holland are the new brands that were introduced in Nepal in the last few years.

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