The trend started after Indian auto major Tata Motors rolled out Nano, billed as the cheapest car in the world, a couple of years ago. [break]
Nano has already been launched in the Nepali market. Similarly, Pooja International -- the authorized distributor of Volkswagen for Nepal - recently introduced Polo hatchback in Nepal.
“It´s a global trend. Automobile companies are rolling out economic and fuel efficient cars, and they are recording good sales too,” said Sarik Bogati, assistant marketing manager of Pooja International.
Toyota - one of the largest automakers in the world - recently introduced Etios and Etios Liva in India, eyeing the South Asian market. United Traders Syndicate that represents Toyota in Nepal is planning to launch both the models in the local market in the near future.
Other Japanese heavyweights like Honda and Nissan have also introduced smaller cars to tap the South Asian market. Syakar Company -- the authorized distributor of Honda vehicles for the market of Nepal -- recently launched Honda Brio in the market.
Similarly, Dugar Brothers and Sons, which holds dealership for Nepal, is gearing up to introduce Nissan Micra in the market.
Maruti Suzuki Cervo
Realizing the shift in market, major players in Nepal´s automobile market like Hyundai and Maruti Suzuki that were already selling hatchbacks are planning to introduce even smaller cars to secure their position in the market. Laxmi Intercontinental is introducing Hyundai Eon in January, while Arun Intercontinental is planning to launch Maruti Suzuki Cervo in the market in the near future.
Nissan Micra
“Given our roads and traffic conditions, it´s better to have a small car. The narrow streets of Kathmandu discourage people to own a big vehicle,” said Abhishekh Dhungana, marketing officer of Laxmi Intercontinental.
Companies like Kia, Daihatsu and Skoda have also introduced compact vehicles. Kia Soul, Daihatsu Terios and Skoda Yeti are selling good in the market, according to the dealers.
Tata Nano
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