We have niche market in Nepal, not a volume market

Subaru, the Japan’s automobile maker, has a relatively shorter history in Nepal when compared to its establishment in 1917. The company that focuses on ‘pleasure of driving’ made its presence in Nepal in 2004 and has only two variants available here. Vijay Motors, the authorised distributors of Subaru share that Nepal has a niche market which caters to those who love the premium brand and a high quality of driving. A new model is being rolled later in the year. Shinchi Kurokawa, Deputy General Manager, Asia - Sales and Marketing, Asia Business Development of Subaru Overseas Sales and Marketing Division II of FUJI Heavy Industry, was recently in Nepal and spoke about Subaru’s presence here. Excerpts:

How is Subaru doing in Nepal since its launch a decade ago?

Historically we have a very good recognition. We have very good sales in the US too. We have changed our marketing polices. I think people in Nepal have received us very well. The performance, feel and drive of Subaru cars are unmatched with others. Here 99 percent of our customers have changed their automotive from Subaru to Subaru, but not other brands. Their brand loyalty speaks a lot about how Subaru is doing in Nepal. We have only two models here for Nepal. We used to sell 10 cars a year some years before which we are at 24 now. With the launch of a new model in May or June next year, which will be a new and upgraded model, we will attract more and more Nepali customers. But the fact we need to note here is we have niche market in Nepal but not a volume market.

Are there any specific strategies for the Nepali market which has such a diverse range of automobiles on offer?

Honestly speaking, we do not have any Nepal specific strategies so far but whatever we have done here is the outcome of our international marketing and promotional strategies. For example, a lot of our Nepali customers have their children studying abroad. They research on internet and compare them with other brands. This way they may at times force their parents to own a Subaru for its performance. You can see a lot of diplomats who come from elsewhere globally buying a Subaru. Our brand recognition across the world has fostered Nepali customers to purchase our vehicle. We are also trying to tell customers to come to us but we don’t advertise much. People still come into the showroom and see the cars, wants to test drive them, and once they do that they love our vehicles.

What are your thoughts on the high taxation system in Nepal and its affect on Subaru?

Taxation is partially to be blamed. But we have a niche market and mass selling is not something we have concentrated on here in Nepal. We only offer two models here and unlike many companies that lure customers with things like music system, camera, etc. we have retained a strong focus on the core that is the engine, safety and performance.