Automobile dealers made nervous by a drop in business following the earthquake have been trying to boost sales by launching schemes and discount offers. They have also been exerting themselves to convince potential customers that this is the right time to buy cars if they want to beat the tax hike that will surely be inserted in the upcoming budget.

Various brands like Volkswagen, Tata, Ford and Kia have launched promotional schemes that include cash discounts, exchange facility, free accessories and smaller down payment on purchase of new vehicles.

“The government has been categorizing automobiles as luxury items. Since the government needs to generate more revenue this year for reconstruction and rehabilitation after the earthquake, it can hike customs and excise duty to boost revenue,” said Bibek Bijukchhe, chief executive officer of Pooja International, the authorised distributor of Volkswagen in Nepal. “So we have launched a consumer scheme and we urge customers to buy vehicles now if they are planning to do so.”

The company is offering cash discounts of up to Rs700,000, on-the-spot finance, exchange facility and free accessories on purchase of vehicles. The offer is valid till the announcement of the budget. Bijukchhe said that sales had gone down massively after the April 25 earthquake.

Likewise, Tata authorised distributor Sipradi Trading has launched its Pre-Budget, 90 Percent Finance Offer under which customers can take home a range of vehicles with a 10 percent down payment. Besides, the company also offers cash discounts ranging from Rs100,000 to Rs300,000 on purchase of Tata vehicles.

Prabin Khatiwada, head of the passenger vehicles business unit at Sipradi, said that sales had increased 25 percent after the launch of their Pre-Budget Scheme. “Auto prices could go up Rs20,000-Rs30,000 apiece if the government hikes taxes in the name of rehabilitation tax. So consumers planning to buy cars want to do so before the budget announcement,” said Khatiwada, adding that overall car sales were returning to previous levels.

Similarly, Sunil Chhetri, deputy general manager of GO Automobiles, the authorised distributor of Ford in Nepal, said that as consumers had been showing less interest in buying cars after the earthquake, they had been trying to attract them with a promotional campaign. “We want to say this is the right time to buy vehicles,” he said. The company is offering cash discounts of Rs150,000 to Rs500,000 on purchase of Ford vehicles. Likewise, Hyundai’s authorised distributor Laxmi Intercontinental is offering cash discounts and exchange facility, while Continental Associates, the authorised distributor of Kia in Nepal, has launched its Pre-Budget Monsoon Exchange offer.

Rupesh Sharma Bhatta, assistant general manager of Laxmi Intercontinental said, “Although customer flow is less compared to the same period last year, we hope that customers planning to buy vehicles one-two months from now will buy them before the budget presentation due to the possibility of a hike in taxes that will push up prices.”