Sales of China-made vehicles rise in Nepal

Just a few years ago, Nepalis shied away from 'Made in China' four-wheelers and were heavily reliant upon Indian, Japanese and Korean-made vehicles.

The reason: Nepalis believed that vehicles made in China were not reliable and would easily break down.

Now, however, China-made vehicles have succeeded to win the hearts of Nepalis automobile connoisseurs and customers because of their proven reliability. Of late also, parts and accessories for vehicles made in China are now readily available in most parts of the country.

Official data released by the Department of Transport Management reveal that the market share of Chinese vehicles in Nepal stood at around 7 percent in the last fiscal year. This used to be a measly 3 percent a couple of years ago.

In the similar way, dealers selling Chinese cars in the market are upbeat about the good performance of Chinese cars in the coming days.

"This is just the beginning of future success of Chinese automobiles," Rajesh Kaji Shrestha, president of Nepal China Chambers of Commerce and Industry, told Xinhua by phone.

Shrestha, who also owns Constant Business Group, the dealer of Zyote, a brand of Chinese four-wheeler, expressed confidence that the roads in Nepal are suited for Chinese vehicles.

He said the automotive industry in China grew with such vigor that Nepali customers have no options but to patronize China-made vehicles which are cheaper and of excellent quality.

Statistics show since 2008, the Chinese automobile industry grew to become the largest in the world as measured by automobile unit production. Since 2009 annual production of automobiles in China exceeds that of the European Union or that of the United States and Japan combined.

Traders said Japanese and South Korean cars also passed through stage when they first entered the Nepali market. They said 10 years down the line, Chinese vehicles could be the largest market player enjoying more than 20 percent market share in Nepal.

"Nepalis' preference and acceptance of Chinese vehicles has grown up tremendously of late," Shekhar Golchha, president of Nepal Automobile Dealers' Association (NADA). told Xinhua.

Golehha said that the fact that the market share of Chinese vehicles in Nepal has surged to 7 percent from 3 percent over the span of two years is quite phenomenal, adding that the demand for Chinese automobiles in Nepal is swelling by around 10-15 percent annually.

The number of dealers distributing Chinese vehicles has also increased significantly across Nepal. There used to be only three dealers of Chinese-made vehicles in Kathmandu but now there are more than 15.

Prabal Sakha. managing director of Universal Automobiles which deals with Chinese automobile brand Geely, said the days are gone when Nepalis used to be lukewarm about buying Chinese vehicles; now they have begun to accept them whole-heartedly.

"It is because Chinese vehicles are not inferior to those made in India, Japan or Korea. But more than that, these vehicles are cheaper," Sakha said.

According to Sakha, Chinese vehicles are around 10-20 percent cheaper than the others. "Given the tough condition of Nepali roads, Chinese vehicles are the best alternative since they are durable and fuel-efficient," he said.

More than half dozen famous Chinese brands like Gelly, Cherry, Great Wall, Zyote, Lifan and others can now be seen in major streets in Kathmandu and other parts of the country.

"The market of Chinese cars is growing slowly throughout the world. Given the strong economic ties between Nepal and China, Chinese vehicles will stand as one of the major players in the Nepali market in a matter of few years," Sakha added.

Dealers also claim that the quality of Chinese vehicles has vastly improved. Chinese car manufacturers, like all Chinese manufacturers, have improved the quality and craftsmanship of their goods and products to make them more competitive in the world market, the dealers said.

"Now, they are highly focused on after-sales services, spare parts and resale value as well. In the long-run, this will mean more sales for Chinese-made vehicles," Sakha said.