Rabindra Raut


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.

Rabindra Raut
General Manager, Vijay Motors (Distributor of Subaru)

Has the restriction on auto loan affected sales?

The government must have introduced such rules considering the financial situation of the country, but we have been badly hit. Some kind of relaxation is seen which has come as a relief. When people can’t manage cash, we can’t sell vehicles to them and people are obliged to buy low cost vehicles. Buyers purchasing on 20% down payment have been mostly affected.

How was 2016 in terms of sales?

Performance was down to a large extent. We struggled very hard to meet our target. With the relaxation, there are positive signs and the approaching festivals have created suitable environment for us.

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

It poses different problems even to the currently running vehicles on the road. There are potholes everywhere due to which it raises the maintenance cost. New buyers show reluctance to buy a private vehicle. Concurrently, in the absence of reliable means of public transportation, personal commuting means has become a necessity rather than a luxury.

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

Financial policy, budget program, economy are considered.

Do you work according to the market plan of the parent company?

There is no hard and fast rule as such, we are very flexible. We have to operate according to the changing times. Moreover, we focus on sustainable plans.

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