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Cash crunch, interest rates hit auto sales
KATHMANDU, MAY 27 -
Registrations of four-wheelers in Bagmati Zone have been declining continuously for the last two months due to a liquidity crunch and high interest rates.
According to the Bagmati Zone Transport Office, it registered a total of 1,231 four-wheelers during the period mid-February to mid-March. The number of registrations dropped to 1,153 during the period mid-March to mid-April and to 698 during the period mid-April to mid-May.
"The registration rate has been falling continuously for the last few months," said Kapil Dangol, under secretary and office in-charge of the Bagmati Zone Transport Office, Light and Heavy Vehicle Unit. "It is expected to drop further due to the liquidity crunch."
In the past few months, registrations of cars, jeeps and vans have gone down. Bagmati Zone, which leads the country in motor vehicle registrations, had registered 816 vehicles in the car, jeep and van category during the period mid-February to mid-March. The number declined to 535 in mid-March to mid-April and to 417 in mid-April to mid-May.
Gopi Krishna Neupane, spokesperson of the Nepal Automobile Dealers Association (NADA), said that the automobile business had started to suffer due to the liquidity crunch, high interest rates and a high import duty of 238 percent. "Last year, financial institutions used to provide loans at around 9 percent interest," said Neupane, who is also president of the Four-Wheeler Vehicles Committee of NADA. "Now the interest rate has increased to 16 percent making it hard for potential owners to buy vehicles."
However, registrations of four-wheelers have increased by 33.43 percent in the first 10 months of the current fiscal year compared to the same period last year. The Bagmati Zone Transport Office registered 9,527 four-wheelers during the review period compared to 7,140 previously.
Registrations of cars, jeeps and vans have gone up by 49.11 percent to 6,048 units from last year's 4,056 units. Similarly,
registrations of pick-up vans and micro buses have increased by 28.59 percent and 286 percent respectively. However, registrations of buses, mini buses and ambulance have dipped.
First 10 Months' Registration Rate
Category 2008/09 2009/10
Bus 531 396
Mini bus 337 200
Truck, mini truck 936 1,135
Car, jeep, van 4056 6,048
Tempo 7 0
Dozer, loader, crane 175 48
Ambulance 49 45
Pick-up 598 769
Excavator 244 235
Loader, grader 66 165
Micro bus 28 108
UN vehicles 113 123
Omni van 0 165
Total 7,140 9,527
Posted on: 2010-05-28 08:42
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