--By TC Correspondent
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| Rajesh Kazi Shrestha Chairman, RK Associates |
RK Associates and its sister concerns such as Nepal International Business (NIB) Pvt Ltd and Constant Business Group (CBG) are authorised dealers of Lifan’s motorbikes and cars and the brands Zotye, Proton, Jonway and Ssangyong. In business for the past 32 years, CBG and its promoters have been trading automobiles and dealing re-conditioned and brand new vehicles in Kathmandu.
CBG started its business by first importing Lifan motorbikes to Nepal and later assembling them here. After selling a large number of motorbikes within a short time, the company felt the need to provide after sales services and spare parts to its customers, which it has now arranged for.
Rajesh Kazi Shrestha, Chairman of RK Associates, the group of companies that runs CBG, NIB, Alliance Insurance Company Ltd, Soaltee Hotel Limited, Status Trading Pvt Ltd among other companies, said that the Lifan Company has introduced SUVs in the Chinese market and that he plans to bring them to Nepal through Nepal International Business (NIB), an authorised distributor of Zotye International Automobiles of China.
Shrestha claims that the company has sold more than 600 Zotye SUVs in Nepal in the past five years. “Customers demand Zotye vehicles that use Mitsubishi engines and provide power, performance and quality to their rides; we brought the Jonway SUV in order to meet their demand,” he says.
NIB has also brought the Zotye Nomad, a mini SUV, to Kathmandu recently. An authorised distributor of Ssangyong Automobiles of Korea too, it has also introduced the four-wheeler Korando in the Nepali market.
Starting a Business
Shrestha’s interest in automobiles and his family’s background in business lured him to the field of trading vehicles. “While I was doing my B.Com, I realised that I my fortunes were waiting for me in this line and that prompted me to jump into this sector,” he recalls.
Given to his keen interest in vehicles since childhood, Shrestha focused himself in the trading of vehicles. He is not, however, confined only to vehicle trading but also involved in insurance, banking, food and carpets, among other businesses. CBG’s sister enterprises are looked over by Shrestha himself while others are taken care of by his business partners.
New Launches
The company introduced the Higer bus in Nepal last Wednesday. The bus’s primary clients are tourism and travel agencies and were brought to Nepal following the request of travel entrepreneurs.
“When I told them it was hard for me to provide the service unless there was a demand for more than 12 buses, tourism entrepreneurs came jointly with an order of 10 buses,” says Shrestha, who also claims the buses will help boost the tourism industry in Nepal. Post the bus launch, CBG has been getting an overwhelming response from the market according to Shrestha.
This initial response, although a boost for the company’s morale, does not ascertain success as the depreciation of the rupee is bound to affect the market price and sales of vehicles. “We have requested the company to reduce the price for pre-order in bulk,” says Shrestha, revealing some cautionary measures for market uncertainty.
Market Challenges and Prospects
The spiraling value of the rupee has hit businesses hard and NIB is not an exception. Though the company is satisfied with increase in sales, Shrestha says the rate of return is too low and additional vehicles are not being imported due to the escalating price of dollars. “We are in a wait and watch mode,” Shrestha says adding that the company does not have immediate plans for market expansion unless the rupee strengthens against the dollar.
With various models and brands available, Shrestha regards competition due multiple choices in the market as a major challenge for his company. To overcome this, the company is keeping a vigilant eye to provide something unique to its customers.
Nepal, however, is a lucrative market for SUVs, fancy cars, motorbikes, buses and other vehicles. Provided there is political stability in the country, Shrestha sees a very good prospective for automobile business here. “People’s purchasing power has gone up and they are demanding more,” he says. “Selling more vehicles would result in big transaction which bodes well to all including businessmen, government and the people.”
Expectations from the Government
High import duties imposed on automobiles by the government, despite Nepal’s WTO membership and commitment to gradually reduce custom duties, is affecting vehicle sales, according to Shrestha.
Entrepreneurs like him expect the government to formulate policies and laws in line with the obligation it has made for the WTO membership.
Shrestha also demands the government to come up with an effective plan to replace old vehicles. “Vehicles older than 20 years should be replaced. They consume too much fuel and pollute the environment,” he says.
Marketing Matters and the Future
Even though marketing work has become more simplified with information and technology, Shrestha is not satisfied with the way it is executed in Nepal. He admits that the business community here has not been able to fully tap the advantage of technology in this field. “Sometimes, our marketing expenditure even surpasses our income,” he says to demonstrate the point.
Shrestha emphasises the need for assessing consumer demand and market wave length as a first step to improvement. “Our company formulates marketing strategies to increase our sales and we are trying to integrate appropriate technology in our marketing tools,” he shares. “But it is still uncertain as to whether investment in marketing would bring returns.”
With over 150 employees in total, Shrestha delegates responsibilities to a trusted team and receives updates and provides guidance through regular meetings. His future plans hinge upon the political and business climate of the country. But even as he echoes common frustrations among businessmen of a lack of encouragement for new ventures, Shrestha has not withheld from making optimistic plans for the future, for solar energy, agri-business and tourism are sectors he has kept an eye out for, he also reveals possibilities of importing airplanes from China soon.
| AT A GLANCE Higer Buses Launched  Nepal International Business Pvt. Ltd has brought Higer Bus in Nepali market. The bus is produced by Higer Company of China. Tourism entrepreneurs are the main target customers of the company for these buses. The buses were launched by Chief Secretary Lila Mani Poudyal and Chinese Ambassador to Nepal, Wu Chuntai, amid a program in capital last week. Designed to suit the topography like of Nepal, the company has believed, this brand of the bus will be popular in Nepali market very soon. The newly introduced buses have the seat capacity of 29 to 35, according to the company. The company has also offered the warranty for 18 months while maintenance and the buses’ spear parts can be easily available from the company. Air condition cooling and heating, luggage compartment with cool air outlet, luxurious seats, reverse display monitor, Electrophoretic technology guarantee and corrosion resistance, among others, are the main features of the bus. Vehicle Brands Imported by CBG Zotye Nomad SUV CBG is also an authorised distributor of Zotye International Automobiles of China in Nepal. The Company had also brought the Zotye Nomad mini SUV in 2011. Zotya Nomad SUV- 3,970 mm long, 1,570 mm wide and 1,733 mm tall - has 1,500 cc petrol engine with 16 valves and a multi-point electric fuel injection system. Zotye Nomad is available in seven colors—pure white, crystal silver, light black, pure red, light blue, dark blue and bright black. Jonway SUV CGP is also an authorised dealer of Jonway Companies’ products in Nepal. Jonway Auto Company is the main exporting automobile company of China. It has minimum grounded clearances of 200 mm. The ISO 9001: 2000 certified company has been exporting its products to around 40 countries. SSangYong Cars CGP is also an authorized dealer of SsangYong, the automobile manufacturing company based in South Korea. It had introduced the new model of its second generation Korando cars in the Nepali in April, 2011. Korando brand cars are sold in 82 countries around the world. The price tag of Korando car was Rs. 4,775,000 at the time of launch. Lifan The sister concern of the CGP has sold Lifan motorbikes in Nepal. Later, it also started assembling the motorbikes itself in Nepal. The company has the service center and spare parts for Lifan customers. Proton Sole authorized distributor of Malaysia based auto manufacturer Proton in Nepal, CGP sells Proton Persona, Gen.2 and Savvy—in the Nepali market. |
