Print Edition - 2014-11-01 | MONEY
1,450 cars sold in Valley during festival season
Oct 31, 2014-
The year’s main festival season just past saw an auto sales bonanza as buyers responded to the flurry of car expos, discount schemes and easy loan offers that preceded the holidays.
According to the Nepal Automobiles Dealers’ Association (Nada), 1,450 cars were sold in the Kathmandu valley during the period September to mid-October.
“Based on the data we received from our members, car sales during the festive season were up 15 percent year on year,” said Gopi Neupane, general secretary of Nada. The highest sellers were hatchbacks priced between Rs 1.6 million and Rs 2.5 million and entry level sedans costing less than Rs 4 million, said Nada.
“Almost all the automobile dealers had launched cash discounts and various prizes for customers, and half a dozen new cars were launched to attract festive buyers. So the overall market witnessed encouraging growth.”
He added that the low interest loans provided by banks and financial institutions also contributed to the growth. Banks had offered auto loans at an interest rate of 7.49 to 9 percent as a festival scheme. Generally, vehicle sales jump 30 percent during the festival season. Neupane said that the Nada Auto Show held in Kathmandu in September also pushed up sales. Most of the dealers reported that bookings and sales during the event surpassed expectations.
“Many customers were waiting for the festive season to buy cars as they see it as a good time to do so, and we witnessed substantial growth during the festival season,” said Rupesh Sharma Bhatta, assistant general manager of Laxmi Intercontinental, the authorised distributor of Hyundai Motors in Nepal.
Hyundai had offered cash discounts, cars and foreign trips as part of its festival scheme. The Grand i10 costing from Rs 2.3 million to Rs 2.7 million and the Xcent sedan with price tags ranging from Rs 2.4 million to Rs 3.1 million were the highest selling cars from Hyundai.
Datsun, which made its entry into Nepal during the festive season, reported sales of 60 units within a month. “As price-conscious Nepali people were looking for an affordable car, we launched the Go hatchback with an introductory price of just Rs 1.9 million, and the response was overwhelming in a short period of time,” said Gyanendra Chand, senior manager of Pioneer MotoCorp, the authorised distributor of Datsun in Nepal.
Published: 01-11-2014 09:31