KATHMANDU: The auto market had high hopes for this year’s Dashain and Tihar. At the start of August, dealers expected around 5,000 cars to be sold during the festival season. Last year the market had grown by almost 40% and things looked positive again this year.
In the fiscal year 2024/25, about 17,000 cars were imported. Around 70% of them were electric and the rest were petrol. With no new taxes on EVs in the budget, both buyers and sellers were optimistic. Banks were offering loans at base rates, remittance inflow was at a record high and the stock market was active. All these signs pointed to strong sales.
Importers had prepared for the festival rush. Many cars were already in stock and more were on the way once the blocked border with China reopened. But things suddenly changed.
The anti-government Gen Z movement created chaos in Kathmandu. In just two days, many showrooms in Thapathali, the city’s auto hub, were set on fire. Buyers lost confidence and sales collapsed. Instead of 5,000 units, less than half were sold. Dealers now expect sales to drop by about 40% compared to earlier estimates. Even people with money to spend are holding back.
Still, there’s a small spark of excitement. During the NAIMA and NADA auto shows, over a dozen new cars were launched. Models like the Jaecoo J5, BYD Atto 1 and 2, Leapmotor B10, Deepal S05, Mahindra XEV 9e, BE 6 and Nammi Vigo drew attention. The BYD Atto 1 and the Nami 01 hatchback became popular among small car buyers.
The new launches may not fully lift the market, but they’ve created some buzz at the end of Dashain.
