KATHMANDU, July 17:Registration of vehicles increased by 34 percent in the first eleven months of fiscal year 2012/13 compared to the data of the same period in the last fiscal year, thanks to ongoing road expansion drive and sufficient liquidity in banks and financial institutions.
According to the Department of Transport Management (DoTM), a total of 207,633 units of vehicles were registered during the period, up from 153,974 units registered in the same period of 2011/12. Of them, 84.24 percent were two-wheelers and 4.58 percent light vehicles like car, van, jeep and tempo.
The registration of new vehicles increased by a whopping 127 percent to 31,894 units until mid-June of 2012/13, up from 14,007 recorded in the same period of 2011/12.
Bagmati zone witnessed a 23.31 percent growth in registration of vehicles within over the first 11 months of 2012/13. A total of 60,568 units of vehicles were registered at Bagmati Zonal Transport Office, up from 49,118 registered in the same period of 2011/12. Of the newly registered vehicles, 50,871 units were two-wheelers. During the period, registration of two-wheelers at Bagmati Zonal Transport Office increased by 22 percent.
According to the latest DoTM report, registration of vehicles has gone up in all the zones except in Sagarmatha, Janakpur, Rapti and Seti.
“The main reasons for the continuous rise in registration of new vehicles are roads expansion, population growth and increasing purchasing capacity of Nepalis,” Devi Ram Bhandari, director of DoTM, said.
Automobile entrepreneurs attributed the growth to easing liquidity situation in banks and financial institutions, rise in remittance flow and construction of new roads in different parts of the country. They, however, added that actual auto sale is lower than the registration figures.
“It´s good to note that registration of new vehicles is increasing. However, we are skeptic about sustainability of this growth,” Shekhar Golchha, president of Nepal Automobile Dealers´ Association (NADA), said. Commenting on excessive taxation of in automobile sector, Golchha said, “The automobile sector will witness sustainable growth, both in terms of registration and sales, once the government reduces tax rates.”