According to the data received from the Department of Transport Management, 4,761 units of two-wheelers were registered in the first month of the current fiscal year in Bagmati zone. The highest number of automobiles are sold in Bagmati zone. In the fiscal year 2010/11, about 53,960 units of bikes were registered in the Bagmati zone. [break]
Dealers selling the products in the market and Nepal Automobile Dealers´ Association (NADA) are not positive about the market response this fiscal year. Nepal´s automobile industry witnessed a drop in sales to the extent of 40 percent in the two-wheeler segment in the fiscal year 2010/11 in comparison to the sales in 2009/10. The registration in the same period dropped by about 35 percent.
“We think that the sales will decrease further in the current fiscal year. Due to schemes and offers, we will receive more customers during the festive season but that will not have much impact on the annual sales,” said Saurabh Jyoti, president of NADA.
Jyoti is also the managing director of Jyoti Group, authorized distributor of Syakar Company, which deals with Honda and Hero Honda vehicles for the market of Nepal.
Jyoti further stated that the government has not provided a favorable environment for automobile sales to pick anytime soon. Despite efforts by the association, the government did nothing to automobile industry´s demand for easing the tax regime. Currently, Nepali customers pay 80 percent tax on two-wheelers and 238 percent tax on four-wheelers.
“Even if the sales are better this fiscal year in comparison to the last one, which is not very likely, our growth rate will be still negative,” said Jyoti.
Dealers are now bringing out festive offers one by one to attract the probable customers. In the market of Nepal, October-November is the month when the sales of automobile reach their peak for the year.
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