Ashma Karki


Nepal Automobile Dealers Association (NADA) is the largest auto show in Nepal. In the 13th edition of this flagship event, B360 spoke with some NADA participants who lead the marketing and sales of their respective automobile brands about the impact of limitation on auto lending and their coping strategy.

Ashma Karki
Marketing and General Administration Officer, Kia

Has the restriction on auto loan affected sales?

Yes, the policy has affected the sales of individual buyers. It has gone down to the tune of 50-60% for individual buyers during the Q3 and Q4 of fiscal year 2073. The entry level was hit hard the most which accounted for approximately 50% of sales in the last fiscal year.

The recent change in auto financing regulation by the central bank has been looked at positively by the auto industry. Financing up to 65% of the sales value definitely provides the end user some level of comfort than the previous financing threshold of 50%. However, consumers expect banks and financial institutions to finance up to 80% of the vehicle cost or end user expects car dealers to provide some buffer in down payment amount or subsidise interest. So overall auto sales have been hit hard.

Considering the traffic and road situation of the country do you think the auto market will grow?

In large metropolitan areas, rising traffic congestion is inescapable. Growing number of vehicle stems from the fact that the living standard of people has increased. Increase in living standard is a positive sign for the auto market, where first time buyers are increasing and existing buyers are upgrading. The traffic congestion has not yet been a prominent problem, whereas road conditions have discouraged buyers from purchasing sedan cars.

What are the factors you consider while selecting a product for the Nepali market?

We consider application of the vehicle, market sentiment, global trend and local geographic conditions. Besides these, we also take into account norms and guidelines of the regularity authority.

How was 2016 in terms of sales?

Overall sales in 2016 was good. Yes, we have high hopes about the sales in 2017 as we have introduced Soul Evan electric vehicle. As the global market is getting inclined towards electric vehicle, in Nepal we are the only distributor of highway capable electric vehicle which comes with international standards. The vehicle has already been able to please a number of customers within a short time frame which marks a positive sign for the sale in 2017.

Do you work according to the market plan of the parent company or prepare your own?

When it comes to market plan we do follow the guidelines of our parent company but, ultimately the market plan gets prepared considering the market needs and trends here.

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