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Gurugram, India, April 07, 2022 (GLOBE NEWSWIRE) — Key Findings
- Bagmati and Lumbini are the leading regions in Nepal representing lion’s share of sales in Automotive Industry.
- In 2019, the country was hit with a nationwide lockdown due to COVID and this was implemented in the peak sales season.
Trends driving the Automotive Industry in Nepal: Nepal does not have any indigenous Automotive manufacturing company. Majority of the vehicles are associated with Japanese companies. This makes the country heavily reliant on the imports of the vehicles. The two-wheeler market is getting more favour from the consumer than four wheeler and heavy vehicles.
Public Transport has a major impact on Automotive Sales: The public transport in Nepal is privately financed which makes the costing and pricing the tariff a profit driven enterprise. Public transport in Nepal faces a major bottleneck of congestion as well. From 2005 to 2018, vehicle registration in Nepal increased at an annual growth rate of 14% as per the findings of a baseline fuel economy study. This growth clearly indicates how rapid urbanisation has fuelled motorisation across the country. In 2018, according to the Department of Transport Management, 96% of passenger vehicles registered were private vehicles. Public transport vehicles represent only 4% of the total registered vehicle fleet, but the travel mode share of public transport is almost equal to that of private vehicles. The situation was worsened by pandemic, increasing the sale of two wheelers since they are cheaper than four wheelers.
Impact of Covid-19: In 2019, the country was hit with a nationwide lockdown due to COVID and this was implemented in the peak sales season. For example, 50% of Yamaha’s sales were made in this season but due to COVID, the sales in 2020 were reported as 0 . After the lockdown was lifted on July 21, industry executives said they were hopeful that things would get better. Accordingly, they started launching schemes and discounts offers. There was a massive increase in sales for 2 wheelers as people were hesitant to travel in any mode of public transport.
Analysts at Ken Research in their latest publication “Automotive Industry Outlook to 2025- Coverage on Bhutan, Sri Lanka, Bangladesh and Nepal” provides a comprehensive analysis of growth of Automotive sector in Nepal, Bhutan, Bangladesh and Sri Lanka. The report covers various aspects including Market Size, Total Number of players, market Share by type of …
Full story available on Benzinga.com
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