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Automobile Sector Returning to Normalcy

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Automobile Sector Returning to Normalcy
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August 16: The business of automobile sector, which had slowed down following the implementation of prohibitory order, is now returning to normalcy. The market which had not witnessed any demand even a month after prohibitory orders were relaxed is finally seeing a rise in customer inquiries and bookings, say automobiles distributors. 

The auto sector, which was shut down due to the second wave of COVID-19 pandemic, has been open since the second week of June. Entrepreneurs had been complaining that even though showrooms were open, people would not come to enquire about the vehicles. According to Kailash Babu Gelal, Managing Director of G Motors, the demand has been increasing a month after the market resumed.  

MAW Enterprises, the official distributor of Skoda, delivered 75 new Skoda Kushaq last week. The model which was unveiled in the market three weeks ago has been delivered in accordance to the demands received from Skoda showrooms all over the country. 

Auto dealers say that the sales of entry level vehicles along with high priced SUVs is encouraging. Ramesh Dhanekhu, managing director of MAW Nepal, the official distributor of Jeep for Nepal, said that the number of people coming to inquire about Jeep is increasing. However sales have not increased as expected due to the confusion over prohibitory order.

Mahesh Pal, Managing Director of Nissan's Mega Motors, said the sales of vehicles have increased by 35 percent compared to last year and customers are waiting for the festive offers. 

Stating that the sales have increased by about 35 percent compared to the previous year, he informed that many are waiting for the offer of the decade. Nissan Magnite stock vehicles have all been sold out so the demand is very good. Since the COVID-19 infections are rising, the number of bookings has increased more than the number of buyers due to the fear of another possible lockdown.

Krishna Prasad Dulal, president of NADA Automobile Association of Nepal, said that the demand for private vehicles has been growing for the last one year.  Though the auto sector has been affected during lockdown, the demand is good. "Even during the six-month long shutdown in the last fiscal year, automobile sales were better than the previous year," he said.

According to him, increase in sales of private vehicles such as jeeps, cars, vans, motorcycles and scooters led to a total imports of 474,679 vehicles in the last year which is an increase by 140,000 compared to the previous year.

 

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