The 13th edition of the biggest automobile exhibition in the country, the NADA Auto Show, concluded on September 16, with a record Rs 5 billion worth of transactions. Taking part in this extravaganza were more than 70 automobile importers, dealers, distributors, and manufacturers spread over around 135 big and small stalls at Bhrikutimandap in Kathmandu. The six-day expo, jointly organized by the Nepal Automobiles Dealers Association (NADA) and the Global Exposition and Management Services, showcased the latest two- and four-wheelers under the same roof. Making their presence felt at the event were major automobile brands such as Honda, Jeep, Mahindra, Isuzu, KIA, Ford, Hyundai, Tata Motors, Toyota, Hyundai, Renault, Nissan TVS, Bajaj, Royal Enfield, NIU, Miyama, and Vespa, to name a few. Besides new vehicles, there were also stalls for spare-parts, tires, lubricants, garage equipment, battery, and other auto accessories.
Although the total number of visitors (65,000) this year was not a significant increase from last year’s (62,000), the transaction amount this year doubled from last year’s Rs 2.2 billion. The sales at the NADA 2017 had been partly affected by a liquidity crisis, with commercial banks tightening hire-purchase loans. But with increased liquidity, sales this year soared.
“There are many other factors behind the increase in sales,” says Krishna Prasad Dulal, vice-president of NADA. “First, this time Nepali consumers showed more interest in purchasing bigger and more expensive crossovers and SUVs compared to smaller passenger cars. Also, their purchasing power seems to have increased and a culture of changing and upgrading cars has been established.” Dulal explains that in terms of quantity, sales of smaller hatchbacks and sedans are higher but in terms of revenues, crossovers and SUVs contributed significantly more to the total pot of Rs 5 billion.
“Our streets are becoming less maneuverable for smaller cars with low ground clearance and the SUVs have also become more affordable due to high competition,” says Dulal. “Take the Jeep for example, a new entrant in the Nepali market that nonetheless notched up satisfactory sales in the NADA week.”
As for the consumers, their expectation of reduced import taxes and excise duties did not come true this fiscal too. In fact, the government increased taxes on both two- and four-wheelers. Says Saurav Nepal, an automobile enthusiast and journalist, “As always, NADA succeeded in creating an extravagant affair, showcasing a wide range of automobiles. I was particularly impressed by the new electric vehicles, Jeep SUVs and Harley Davidson motorcycles that were on display. But unfortunately taxes make them unaffordable.”
The electric vehicles launched this year have managed to attract many consumers, as was evident at the NADA Auto Show, Dulal explains. But there is still a state of confusion among both the buyers and sellers about their future. The facilities for recharging and repairing electric automobiles are poor at the moment and as most EVs coming into Nepal are from branded companies, their costs are relatively high.
“Currently, the best option is to import relatively cheaper EVs from China. But the perception of Chinese products is not good,” says Dulal. “The other option is for the government to promote EVs by reducing taxes and facilitating the use of electric vehicles”
