KATHMANDU: The domestic automobile sector has remained one of the worst hit sectors by the global COVID-19 pandemic.
Auto dealers are lately worried as there has been no business since almost six months owing to the lockdown and other prohibitory measures adopted by the government.
The impact of the pandemic on the automobile industry can also been seen in the recent statistics released by the Department of Customs (DoC), which reveals that the import of vehicles has come down by 37.76 percent in the first month of the current fiscal year compared to the corresponding period of the previous fiscal year.
With showrooms quiet and manufacturing slowed down, many vehicles are sitting idle, awaiting buyers who are hesitant to make big purchases during uncertain times. This situation has led to an increased demand for vehicle storage services, as dealerships and individuals alike seek secure spaces to keep their unsold or unused cars. Towing services have stepped in to offer solutions, providing temporary or long-term storage options for vehicles until they can be sold or put back into use.
This shift in demand reflects the challenges faced by the automotive sector, with businesses adapting to the changing landscape by diversifying their services to meet the needs of a market grappling with the effects of the ongoing pandemic.
As per DoC’s data, Nepal imported vehicles worth Rs 5.53 billion in the first month of fiscal 2020-21 though the country had imported vehicles worth Rs 7.28 billion in the same month of 2019-20.
Krishna Prasad Dulal, president of NADA Automobiles Association of Nepal, informed that automobile dealers have not been able to import even 10 percent of the demand due to the pandemic and lockdown. However, he stated that the import of two-wheelers has been comparatively higher in the last six months.