March 15: Demand for private vehicles has increased significantly after the government lifted lockdown and eased restrictions. The sales of automobiles remained zero till July last year due to the impact of lockdown imposed since March 24.

Although the demand for two wheelers has tripled since last July, the sales of four wheelers have not been able to improve. However, businessmen say that the demand for four wheelers has also increased after the Dashain festival.

As the demand for private vehicles has increased unexpectedly, businessmen have been struggling to adjust the supply chain as per the demand. While the demand is increasing, there is a shortage of new vehicles in the market.

Although customers are now looking for new vehicles, businessmen have not been able to supply them.

Secretary of Nepal Automobile Dealers Association (NADA) Anup Baral said that the demand for vehicles has increased recently but they have not been able to supply the products as per the demand. He said that there is a shortage of vehicles including Suzuki, Tata, Mahindra and Hyundai in the Nepali market. “There is demand but dealers do not have vehicles,” he said, "There has been no supply for two months."

The demand for economical commercial vehicles has increased in Nepal recently. According to the Customs Department, 1,340 commercial vehicles have been imported in Nepal in the first seven months of the current fiscal year, 58 percent more than the corresponding period last year. However, as per the businessmen, the demand is higher than this figure.  

Baral said, "Even though the demand has increased, sales are normal as imports have not been able to meet the demand."

He says that the attraction towards private vehicles has increased and the number of people buying four wheelers has also increased due to increasing liquidity in banks and availability of loan at cheaper interest rates.

Roopam Shrestha, manager of Sipradi Trading, the official dealer of Tata vehicles for Nepal, says the supply is not good. He said that the company could not send vehicles to Nepal due to the deteriorating cycle of vehicle production in India and increased demand in India as well. "Supply of passenger vehicles is normal, but the supply of commercial vehicles is not able to meet the demand," he said. Meanwhile he informed that currently customers are booking vehicles in advance.

Not all parts of vehicles manufactured in India are manufactured in India. As most of the parts are imported from China and some other countries, there is a shortage of parts in India, according to Indian media.

"Even Indian companies have not been able to assemble due to lack of parts," said Kailash Babu Gelal, managing director of G Motors, the official dealer of Renault for Nepal.

According to him, those who want to buy a vehicle now have to wait for at least two months after booking in advance.