Auto registrations in Bagmati down 22pc

Registrations of vehicles in the last fiscal year in Bagmati zone, the country’s largest automobile market, were down 22.13 percent compared to fiscal 2009-10. Automobile dealers have attributed the slump in registrations and sales to the hike in excise duty and liquidity crunch in bank and financial institutions (BFI).

According to the Bagmati Zone Transport Management Office, 64,010 vehicles (four wheelers and two wheelers) were registered in Bagmati during fiscal 2010-11, down from 82,204 in 2009-10. Bagmati accounts for 60 percent of auto registrations and sales in the country.

The number of motorcycles registered in 2010-11 stood at 53,690, down from 69,369 in the previous fiscal. Likewise, registrations of four-wheelers dipped 21.75 percent to 10,050 from 12,845 in fiscal 2009-10. Of the total four wheelers registered, 7,013 units were car, jeep and vans. Madan Singh Mahat, undersecretary and chief of the two-wheeler unit at Bagmati Zonal Transport Management Office, said registrations declined as a result of reduced import and slowdown in sales. “We were able to collect only Rs 540 million in vehicle tax against the target of Rs 660 million,” he added.

The government through the last year’s budget had increased excise duty on four wheelers by 10 percent to 60 percent and in two wheelers by 10 percent to 40 percent. In the wake of liquidity crisis, BFIs had also increased interest rates on auto loans from around 8 percent in 2009-10 to more than 16 percent in 2010-11. According to Saurav Jyoti, president of Nepal Automobile Dealers’ Association (NADA) the current market slump is the biggest in 15 years. “Sales of automobiles has dropped in such a way that it seems it will be very difficult for us to sustain if the situation remains same,” said Jyoti, adding that the market is not likely to bounce back even this year.

Jyoti added that around 400 to 500 four wheelers are awaiting clearance in customs offices. “The overall market dropped by around 40 percent in last fiscal year. We had requested the government to provide some relief in the new budget, but to no avail,” he said.

Earlier, NADA had demanded that the government limit the excise duty to 45 percent in four wheelers and 25 percent in bikes. However, there was no change in the excise duty structure in the new budget. Shekhar Golchha, executive director of HH Bajaj and vice-president of NADA, said two-wheeler sales dropped by 30-40 percent in the last fiscal year. “The government must not formulate policies only keeping mind traffic congestions on Valley roads,” he added.

FY 2010/11

Month Motorcycle Four Wheelers

Mid-July to mid-Aug 5420 948

Mid- Aug to mid-Sept 7112 954

Mid-Sept to mid-Oct 5044 1062

Mid- Oct to mid-Nov 4507 1247

Mid-Nov to mid-Dec 5842 971

Mid-Dec to mid-Jan 4619 499

Mid-Jan to mid-Feb 3839 757

Mid-Feb to mid-March 5788 801

Mid-March to mid-April 2851 682

Mid-April to mid-May 1977 606

Mid-May to mid-Jun 2036 640

Mid-Jun to mid-July 4925 883

Total 53,690 10,050