Jul 23, 2010

Motorbike sales zoom 42 percent

KATHMANDU, JUL 22 - Sales of two-wheelers in the Kathmandu Valley increased by a whopping 42 percent during the last fiscal year compared to the previous fiscal. The surge has been attributed to aggressive promotional schemes launched by distributors to reverse slumping sales caused by a liquidity crisis in the banking system.

A total of 69,359 units of various types of motorbikes were registered at the Bagmati Zone Transport Office in fiscal 2009/10 against 48,811 units in the previous FY.  “Sales of bikes have gone up significantly in the capital as it is easy and affordable compared to four-wheelers,” said Madan Singh Mahat, office in-charge and under secretary of the Motorcycle Unit. “Moreover, the various promotional schemes launched on different occasions also supported the growth.”


Bagmati Zone, encompassing Kathmandu, Bhaktapur, Lalitpur, Dhading, Kavrepalanchok, Sindhupalchok, Nuwakot and Rasuwa districts, accounts for 50-70 percent of all the bikes and four-wheelers sold in the country. During fiscal 2008/09, a total of 83,334 bikes were registered across the country with 48,811 being registered in Bagmati Zone.

In a month-wise analysis, the fifth month of the fiscal year (mid-Nov. to mid-Dec.) witnessed the highest sales during which a total of 7,410 units were registered in Bagmati Zone. The eighth month (mid-Feb. to mid-March) saw the lowest sales with 3,999 units. Mahat said that they had expected to register around 7,000 bikes in the final month of the fiscal year. However, it did not happen as the import duty was not revised as had been expected. “Comparatively, the registration of Bajaj bikes has gone up this year,” he added.

Hansraj Hulaschand, a subsidiary of the Golchha Organization, is the sole authorised distributor of Bajaj two-wheelers for Nepal. It had offered a 21-inch television free on the purchase of a Bajaj bike to clear its stock that had accumulated as a result of tighter credit. “This year, our sales have increased by 45-60 percent compared to last year,” said Shekhar Golchha, director of the Golchha Organization.

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