With a surge in vehicle registrations in 2013-14, Nepal’s auto industry set for upward ride.
The 2013-2014 fiscal for Nepal’s auto industry has been upscale in terms of recovery from the general slump. According to statistics released by the Department of Transportation Management (DoTM), a firm total of 198,343 auto mobiles got registered in 2013-2014 as opposed to 208,483 in 2014.
The country’s capital Khatmandu valley is booming with massive infrastructural projects all set to roll out in a full-fledged manner in the next few years.
Industry analysts accredit the growth in the auto sector to 2 factors –
1. Multiple and conducive financing facilities that are being provided by banks and other institutions (BFIs).
2. Lowered interest rates on auto loans, in the past 4 years, interest rates have dipped from 16 percent to 8-8.5 percent.
Nepal, like all other developing countries has a burgeoning middle class that is increasingly becoming consumer oriented, though this process is gradual, it has begun to show effects on sectors like the auto industry. People increasingly prefer four-wheelers over two-wheeler transport means.
Saurabh Jyoti, former President of the Nepal Automobile Dealers’ Association (Nada) said, “The market has become stable compared to the past few years.”
The small country’s auto market is now set for one of its most vital events – NADA Auto Show. It is the sole auto show in the country and begun on Wednesday September 4, 2014. The event will be a playground for auto enthusiasts, sellers and buyers.
New product launches accompanied by offers and discounts will be a major boost for Nepal’s slowly recovering auto sector.