According to the Department of Transport Management, a total of 138,907 two-wheelers were registered in 2010/11. The department had registered 168,707 two-wheelers in 2009/10.[break]
Sekhar Golchha of Golchha Organization, which represents Baja bikes in Nepal, attributed the drop to government apathy to the sector. “We were expecting the government to understand our problems and address issues that we had highlighted. But it seems that we failed to convince the government officials,” Golchha, who is also the director of Nepal Automobile Dealers´ Association (NADA), said.
Most of the auto dealers say the economic situation in the country has to improve to ease overall market situation.
Though registration in the 12th month (mid-June to mid-July) of 2010/11 increased to 14,921, from 9,791 units registered in the 11th month (mid-May to mid-June), auto dealers are not happy with the sales. “Most of the two-wheelers registered during the month are languishing in our go-down. Rise in registration doesn´t reflect market situation,” said Saurabh Jyoti, president of NADA and managing director Jyoti Group that represents Honda and Hero Honda two-wheelers in Nepal.
The double-digit drop in registration means the automobile industry lost business worth Rs 5.96 billion if average price of two-wheeler is assumed at Rs 170,000. Similarly, the government lost about Rs 16 billion revenue from automobile sector due to rise in taxes.
Auto dealers say only improvement in the country´s economic situation will end downturn in automobile industry. “We are hoping for some economic upturn so that we will not have to face similar situation in this fiscal year,” said Golchha.
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