KATHMANDU: The hatchback segment, once one of the most popular car categories in Nepal, has continued to lose market share since the beginning of 2026.
Sales of both electric and petrol-powered small cars have declined in the passenger vehicle market. Hatchback cars held a 23 percent market share in 2025, but the share has dropped to 17 percent based on data up to June 15, 2026.
In 2025, Nepal recorded sales of 15,887 passenger cars, including 3,591 hatchbacks. The decline is mainly linked to falling demand for electric hatchback models.
The petrol hatchback segment has also seen a slight decline. Petrol hatchbacks accounted for 13 percent of the market in 2025, while their share has fallen to 12 percent based on imports up to June 15, 2026.
Nepal sold 559 petrol-powered hatchbacks in 2025. However, only 149 units have been imported by June 15, 2026. Total petrol passenger car imports also dropped to 1,310 units during the same period, compared to 4,074 units in 2025.
The growing popularity of SUVs has affected hatchback demand. Buyers are increasingly shifting towards SUVs due to their higher ground clearance, road presence, and availability at similar price points.
Despite the decline, hatchbacks remain a practical option for buyers looking for compact size, good build quality, easy city driving, and comfortable family use.
