Registration of new vehicles in Bagmati zone jumped by a whopping 77.86 percent year-on-year in 2015-16 despite a four-and-half-month-long Indian trade embargo that crippled imports.

The number of registrations almost doubled to 29,794 in the last fiscal year from the previous year’s 16,789, according to the Transport Management Office, Bagmati.

The jeep and van segment posted 105.6 percent growth in the registrations to 21,647. Haulers (trucks, tippers, tankers and containers) and two-wheelers segment saw they registrations jump by a healthy 100 percent and 17.47 percent, respectively.

The segment representing vehicles meant for construction purposes such as crane, dozer, excavator, loader jumped threefold, according to the office. Registrations of almost all types of vehicles, except for pickups and micros, swelled last year, the office said.

“The economy witnessed a high inflow of remittance after the blockade which led to an increase in the people’s purchasing power. Low interest rates on auto loans also prompted people to buy automobiles,” said Anjan Raj Shrestha, president of NADA (Nepal Automobile Dealers Association).

Also, the opening of taxi registration after almost 15 years contributed to the growth of the car, jeep and van segment, afficials at the Department of Transportation Management (DOTM) said.

Meanwhile, a total of 74,465 two-wheelers were registered in 2015-16 compared to 63,386 in the previous year.

Despite all adversities, the two-wheeler segment has observed a “supernormal growth”, the dealers said. “There are four major drivers of growth—excess liquidity, continuous inflow of remittance, opening of new roads around the country and rising demand,” said Shekhar Golcha, executive eirector of Hansraj Hulaschand & Company. “Keeping in mind all the obstacles faced during the year, the growth is phenomenal.”

He said the changing buying behaviour of two-wheeler enthusiasts also contributed to the growth. “Customers are exchanging their old bikes with new ones every 20-24 months,” he said, adding his company sold around 57,000 Bajaj bikes last year and claimed to have a 56 percent market share.

The April-May period saw the highest registration of two-wheelers for the year—7,960 units. The average of two-wheeler registration for the year stood at around 6,205. During the four-month embargo, the number, however, had fallen to 1,815 per month.

“The Office receives 1,000 driving license applications on a daily basis,” said Ishwor Raj Dhahal, office chief of Bike and Scooter Registration Department of the Transport Management Office. Moreover, the revenue collection increased by 19.51 percent to Rs1.47 billion.

“Despite a fall during the unrest, the vacuum was filled by an exceptionally high demand for two-wheelers during the recovery phase,” said Rajan Raj Puri, manager at Syakar’s two-wheeler unit. “I/NGOs along with others purchased two-wheelers to visit quake-affected villages and for other reconstruction tasks, adding to the growth.”

Puri said around 70 percent of the two-wheeler owners upgrade to new models every two years.   

As far as heavy vehicles (trucks, tippers, tankers and containers) are concerned, the segment saw 2,240 registrations with a cent percent rise. And, as many as 863 heavy equipment such as cranes, dozers, excavators and loaders were registered.

“More than 1,000 heavy vehicles were registered in the Kathmandu Valley alone for reconstruction purposes,” said Basanta Adhikari, vehicle section chief at DOTM. “The increase in the registration of construction and heavy commercial vehicles can be attributed to reconstruction requirements.”