Auto Sales Drive Strong Growth for Tata, Mahindra and Omoda Dealers

The operating income of three authorised vehicle distributors in Nepal rose sharply in the last fiscal year, driven by increased vehicle sales, according to credit rating reports.

Companies selling vehicles of Tata, Mahindra and Omoda brands recorded significant growth in revenue in fiscal year 2024/25, reflecting strong demand in the automobile market despite broader economic challenges.

According to a credit rating report by ICRA Nepal, SPG Automobiles, a subsidiary of Sharda Group and the authorised distributor of Omoda and Jaecoo vehicles in Nepal, recorded business worth Rs 3.62 billion in fiscal year 2024/25. This marks a 134 percent increase compared to its turnover in fiscal year 2023/24.

The report shows that around 49 percent of SPG Automobiles’ vehicle sales were generated through its central showroom alone, highlighting intense competition in Kathmandu’s electric vehicle (EV) market. Of the company’s total revenue, 57 percent came from the Omoda E5, while 39 percent was generated from Jaecoo-brand vehicles.

SPG Automobiles is jointly owned by Sandip Kumar Sharda, who holds a 51 percent stake, and Gaurav Sharda, who owns the remaining 49 percent. A senior company official said rising consumer interest in electric vehicles helped boost sales last year. However, he cautioned that sales in the current fiscal year may fall short of expectations due to attacks on vehicles during the Gen Z-led protests.

Sipradi Trading Sees 30% Growth

Sipradi Trading, the authorised importer and distributor of Tata vehicles in Nepal, recorded a 29.58 percent increase in turnover in fiscal year 2024/25, according to ICRA Nepal. The company posted revenue of Rs 24.08 billion during the year.

Commercial vehicles accounted for 69 percent of Sipradi’s total business, with the segment commanding an estimated 60–65 percent market share in Nepal. While Sipradi trades both fuel-powered and electric vehicles, the rating report notes that the company’s heavy reliance on commercial vehicles poses a potential business risk.

Despite the dominance of Chinese brands in Nepal’s electric four-wheeler market, Tata’s electric vehicles—such as the Punch EV, Tiago EV, Curvv EV and Nexon EV variants—have maintained a comparatively strong presence.

Agni Incorporated’s Turnover Up 28%

Agni Incorporated Pvt Ltd, the authorised distributor of Mahindra vehicles in Nepal, recorded a 28 percent growth in turnover in fiscal year 2024/25 compared to the previous year, according to ICRA Nepal. The company’s total business stood at Rs 7.13 billion during the review year.

Established in 1991, Agni Incorporated sells Mahindra passenger vehicles and tractors in Nepal. The rating report shows that commercial vehicles contributed the bulk of the company’s revenue, with nearly 90 percent of sales coming from just two models—Scorpio and Bolero. The pickup and tractor segments alone grew by 65 percent during the review year.

The report also notes that electric vehicles currently make a limited contribution to Agni’s overall revenue, although the company has recently launched new EV models.

Agni Group Chairman Cabinet Shrestha said the automobile sector has remained relatively dynamic despite an economic slowdown. “However, despite excess liquidity in banks, consumers are still hesitant to purchase new vehicles,” he said, adding that demand in the auto sector could rise further if the government adopts a more flexible policy.