NADA AUTO SHOW: A Hope Revived

Even as the country is heading towards a dismal economic situation, young industrialists have generated a hope through the NADA Auto Show

Sept. 26, 2015, 5:45 p.m. Published in Magazine Issue: Vol.: 09, No. -7, September 25 2015 (Ashoj 8, 2072)

When young industrialists such as Saurav Jyoti and Shekhar Golchha announced to hold the NADA a few years ago, only a few people agreed that Nepal Automobile Dealers Association (NADA), an umbrella organization of automobile dealers in Nepal, would emerge as a game changer in a short period of time.

All the car dealers in Nepal, including Saurav Jyoti, released new models of motorbikes and cars. Similarly, Golchha also released new motorbikes followed by Bishnu Agrawal, who released new cars and motorbikes.

Chaudhary group also released new brands Suzuki motors and United Motor released new brand of Toyota. Similarly, IME also released new heavy vehicles and Sipradi released new version of its cars.

Syakar Trading Company (STC), the authorized distributor for Honda cars in Nepal, has launched the all-new Honda Jazz.

With its sporty crossfade monoform design, bold, super-slick front and side character lines, dynamic alloy wheels and rear spoiler makes, the Honda Jazz is built to stand apart from the crowd, as per a press release. Its elegant aerodynamic style symbolizes speed and control, whereas its futuristic cockpit interiors, based on innovative ‘Man Maximum Machine Minimum’ philosophy, offers best-in-segment space (354 liters) and comfort. To provide maximum safety, it consists of dual airbag, ABS, ACR body structure, first-in-segment multi-view reverse camera, and paddle shift.

CG MotoCorp, the authorized distributors of Suzuki in Nepal, has announced its Dashain and Tihar schemes called Chamatkaar. CG MotoCorp has always maintained an impressive track record of delivering the best of schemes and this year is no different than the previous ones. The Chamatkaar scheme is unparalleled to any other running scheme and is sure to exceed all expectations.

With the numbers of new cars and motorbikes displayed at the NADA, there was a rush of young customers to grab one. When the NADA concluded this week, there were over five billion rupees equivalent in economic transactions with booking for a large number of new cars, motorcycles and other vehicles.

Despite prolonged strikes in Nepal’s southern plains with the road blockades, buyers did not feel any hesitation to book new cars and order them. With the visitors of over 50,000, there was a booking order of over Rs. 5 billion.

As the government still sees automobiles as luxury, it imposes heavy taxes on it. NADA officials are demanding that the government reduce heavy taxes imposed on cars.

NADA also showed that there is a strong rising middle class who can change the economy given the improvement of political situation.

However, Finance Minister Dr. Ram Sharan Mahat frankly admitted that the government is in no position to reduce the tariff on luxury cars and said he has already reduced the tariff in importing public buses. The government imposes 240 vehicles expensive and put them beyond the reach of majority of the population.

“Automobile industry contributes around one-third of total revenue but the government isn't investing much on development of roads and transport infrastructures,” said Shekhar Golchha.  "Though road network is expanding, it is not up to the standards. Automobile penetration in Nepal stands at 6 percent which is one of the lowest penetration rates in the world."

Others too hold similar views. "Once people's access to automobiles is increased, it will spur economic activities and make significant contributions to national economy,” said Anjan Shrestha, vice president of NADA. "The government should either slash customs duties or subsidize vehicle imports through other means."

NADA officials also criticized the government for its failure to open sufficient vehicle fitness testing centers across the country.

According to the organizers, the event promoted Nepal's automobile industry and increased automobile sales ahead of the festive season.

"Responding to the recent earthquake, this year's Auto Show portrays will, strength, and commitment toward development and rebuilding of the economy," Shambhu Prasad Dahal, coordinator of the Auto Show, said.

There were 120 stalls of 65 domestic and foreign exhibitors in an area spread over 9,000 square meters. The Auto Show showcased four-wheelers from 14 brands, two-wheelers from 15 brands and heavy commercial vehicles from five brands.

Renowned automobile brands like Datsun, Daihatsu, Fiat, Ford, Honda, Hyundai, Kia, Nissan, Skoda, Suzuki, Tata, Toyota, Volkswagen, SsangYong, Ashok Leyland, Bharat Benz, Escorts, Aprilla, MV Agusta, Bajaj, Benelli, Hero, Hero Electric, KTM, Mahindra, Royal Enfield, Suzuki, TVS, UM and Vespa, among others, participated in the Auto Show.

As the deposit in Nepal’s banking sector is going up, banks also joined the show with their stalls to provide loans to potential customers. Instead of thinking about making all poor, the government needs to think about making all of them rich. 

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