The automobile sector that was just beginning to recover from a sharp drop in business after the April 25 earthquake has again been hit hard by strikes in the Tarai.

As a large part of the southern plains remains tense due to the protests held by diverse political parties and groups, the distributors of various auto brands are not sure about when they should roll out new models for the upcoming festive season.

Some dealers have even complained that they have not been able to deliver vehicles booked by customers as they have been stranded at customs offices due to the long running bandas.

Auto traders said that car sales were down 50 percent as of the last month this fiscal. They are also less cheerful about sales prospects during the upcoming festive season due to the possible effects of the earthquake and recent political developments.

“We have not been able to fulfil the advance orders as some of the cars have been stuck in Raxaul for the past two weeks and some in Birgunj,” said Rupesh Sharma Bhatta, assistant general manager of Laxmi Intercontinental, the authorised distributor of Hyundai in Nepal, adding that political unrest had dampened the vehicle business while it was still trying to recover from the earthquake.

Vehicle dealers usually unveil various festive schemes during this time of the year for the upcoming Dashain and Tihar festivals. But many have not launched any schemes due to the uncertain market conditions amid the political turmoil. “We are not sure whether the festive scheme will be fruitful,” added Bhatta. The company had recently launched the i20 Active crossover and the Elite i20 premium hatchback.

Likewise, Maruti Suzuki’s Nepal distributor CG MotoCorp is undecided about its new launches. “Sales were badly affected in the Tarai region and the Kathmandu Valley. We have not been able to distribute cars to some of our dealers across the country,” said Karan Choudhari, executive director of CG MotoCorp.

“We are still confused about placing orders for the festive season and holding new launches,” said Karan Choudhari, executive director of CG MotoCorp, adding that this festive season would be less cheerful compared to last year.

Expressing similar sentiments, Prabin Khatiwada, head of the passenger vehicles business unit at Sipradi Trading, the authorised distributor of Tata Motors in Nepal, said, “Sales of vehicles are down 50 percent compared to the same period last year. But we are hopeful this festive season will bring cheer to the sector.”

Sipradi recently launched the Tata Bolt hatchback. The company will also be organising Car Mela from September 3 for three days to boost the buying sentiment among customers.

Likewise, Volkswagen, which had scheduled vehicle launches in August, has postponed the plan for September. “Since the current market condition is uncertain, we are looking for a good time in the future,” said Bibek Bijukchhe, chief executive officer of Pooja International, the authorised distributor of Volkswagen in Nepal.