Two-wheeler market rebounds after two-year slump
KATHMANDU, MAY 08 -
After dropping consistently for more than two years, the two-wheeler market has once again picked up speed. Traders said that sales of two-wheelers had increased more than 40 percent. The data of the Department of Transport Management too shows that imports of two-wheelers rose 22 percent in the first nine months of the fiscal year compared to the same period last year.
One of the largest players in the two-wheeler scene in the country, HH Bajaj, reported that they had witnessed a growth in sales of more than 40 percent. The company has so far sold around 30,000 units of two-wheelers. Shekhar Golchha, executive director of HH Bajaj, said that the reason behind the increase in sales was the bounce-back effect after a huge fall.
He credits the increase in sales to the easy availability of financing services and auto loans at a lower interest rate compared to the past few years. Currently, finance companies are offering auto loans in the range of 9.5 to 12 percent interest. “As two-wheelers are the means of transportation of the general people, easy availability of finance has played a positive role in the increment in sales,” Golchha said.
The trend of increment in sales outside the Kathmandu valley, which has been rising since the past few years, has continued so far, traders said. “The Kathmandu market is still on the slower side. The current growth has been fuelled by sales outside the valley,” said Golchha. His company has seen a growth in sales of power models having an engine capacity of 150 cc and more. “There is a very good growth in sales in the Tarai region of the country.”
Meanwhile, another player in the domestic two-wheeler market, TVS, has been witnessing a similar situation. Alok Joshi, deputy general manager of AIT, the authorised distributor of TVS motorcycles in Nepal, said that the company had witnessed a momentous growth in sales of two-wheelers. “Till now, we have sold 7,000 units,” Joshi said. Apart from AIT, another distributor, Mahabir Automobiles, too deals in TVS motorcycles in various places across the country.
Joshi said that sales of two-wheelers had increased as public transportation isn’t reliable in the country. “With the market becoming vibrant now, we are expecting the market to grow further in the near future,” he added. Launching of schemes by motorcycle dealers round the year and new model rollouts too have aided growth, he added. Another factor in increasing sales, according to him, is exchange facilities being offered by almost all the companies.
Likewise, sales of scooters too have zoomed. According to Golchha, though the Kathmandu market isn’t doing well, the scooter segment has seen growth here. “The condition is the same outside the capital city,” he said. Similarly, Joshi added that the market for TVS scooters had also increased around 22 percent.
Posted on: 2013-05-08 08:57