KATHMANDU: There are currently over three dozen car brands available in the Nepali market, creating a competitive environment. This growing competition has brought several benefits for car buyers.
However, for car sellers, the situation seems more challenging. They not only have to focus on selling vehicles but also need to invest in after-sales services and charging infrastructure to stay competitive.
On average, around 15,000 cars are sold annually in Nepal. In some years, the figure has reached up to 21,000, while in others, it has dropped to around 8,000. Due to such fluctuations, many car sellers are finding it difficult to sustain their business.
In the coming weeks, two auto shows are scheduled to take place. More than two dozen new models are expected to be launched during these events. While this presents a challenge for sellers to boost their sales, it gives buyers a wider range of options to choose from.
A mix of growth and hurdles for car sellers
As more brands become active in the market, they get a chance to strengthen their presence. Several Chinese companies are using this period to showcase their products and increase their market share. The festive season of Dashain and Tihar is also approaching, which is typically a peak sales period.
Looking at past trends, nearly 55 % of annual car sales occur during the festive season. A similar pattern is expected this year, and sellers are working hard to take full advantage of it.
While the market presents opportunities, the challenges are just as significant. The growing popularity of electric vehicles has pushed many established brands to cut down on their operational costs. Some new EV sellers are already facing financial losses.
For many, this year could be a crucial turning point. Rising expenses and slow sales have made it difficult for several brands to survive. Some brands have yet to appoint dealers outside Kathmandu Valley, and even well-established names are facing issues with dealer management.
Operating costs are rising steadily — from showroom and warehouse expenses to employee salaries and bank interest payments. On top of this, increasing competition is forcing sellers to reduce prices to attract customers.
A buyer-friendly market with more perks
For car buyers, this is a favorable time. The market offers a wide range of choices, making it easier to select a car that matches individual preferences in terms of design, size and budget.
Due to some disagreements among companies, two auto shows will take place this year. As a result, Dashain offers are starting earlier, from mid-August, creating a competitive pricing environment that benefits consumers.
Banks and financial institutions are offering auto loans at fixed interest rates of around 8 %. This provides buyers with a sense of financial stability and helps avoid unexpected loan-related costs.
That said, there are still a few challenges for consumers. Choosing the right brand can be confusing. Buyers may be concerned about post-purchase services, the availability of spare parts, or whether the brand will remain in the market in the long run. These factors can make the decision-making process a bit more complex.
