BUYING A CAR? DO IT NOW!

AUTO sales have jumped as buyers rush to beat the expected rise in vehicle taxes in the coming budget. It has been a government tradition to jack up the import duty in each new budget, and people planning to buy new wheels habitually scramble when the end of the fiscal year approaches. Major automobile dealers have reported that sales have increased 40-50 percent compared to normal days. Enquiries and bookings too have zoomed, they said. Besides the fear of a possible rise in taxes, easy financing provided by financial institutions is another factor triggering a rise in sales. Pooja International, a subsidiary of the Vishal Group and the sole authorised distributor of Volkswagen (VW) vehicles in Nepal, said that sales of vehicles had swelled more than 50 percent. Sarik Bogati, marketing manager at Pooja International, said that the company was selling around six VW vehicles daily. “Going by the current sales trend, we might sell more than 150 vehicles across the country during this pre-budget month,” said Bogati. Similarly, Syakar Trading Company, the sole authorised distributor of Honda vehicles in Nepal, said that Honda vehicles had been selling faster due to the approaching budget presentation. “Our sales have gone up by 50 percent,” said Lomus Manandhar, manager at Syakar. “Against the average sales of one car daily in previous months, we are now selling around three vehicles daily.” The company also reported a sharp increment in bookings. “People are hurrying fearing that prices might go up after the budget presentation,” he said. Continental Associates, the sole authorised distributor of Kia motors in Nepal, has witnessed a boom in sales too. Senior manager of the company Chhatra Balayer said that much of the footfall at the company showroom was turning into sales. A possible rise in vehicle prices due to a strengthening of the US dollar in recent days has also encouraged people to purchase automobiles before that happens. Autos imported from third countries at the moment will definitely be pricier as they have to be paid for in US dollars. Meanwhile, the country’s largest auto seller Maruti Suzuki has said that the company will hike prices of almost all the models from mid-July. “We cannot sell vehicles at the same prices once the new consignments arrive in the market,” said Bogati. “There will be some price adjustment soon.” While four-wheeler sellers are enjoying brisk sales, two-wheeler dealers say there hasn’t been any increment in sales. “The monsoon isn’t exactly the season for two-wheelers. It is a customary trend for sales to remain slow during the rainy season,” said Dinesh Ratna Tuladhar, manager - Hero division at Nepal General Marketing, the sole authorised distributor of Hero motorcycles. An official at HH Bajaj, which imports Bajaj motorcycles in Nepal, had a similar opinion. Apart from this, vehicle imports have remained strong with 170,084 vehicles being registered with the Department of Transport Management in the first 10 months of the current fiscal year. In fiscal 2011-12, the figure stood at 163,640 units. It has been a government tradition to jack up the import duty in each new budget, and people planning to buy new wheels habitually scramble when the end of the fiscal year approaches.