Over the years, the infusion of private capital increased that led to the establishment of many new companies, which in turn created thousands of new jobs and provided employment to middle-class youths. Many of those absorbed by the job market then, now hold high positions with handsome pay, perks and benefits. The rise in their earnings enabled them not only to save but also increased their purchasing capacity, transforming the way middle-class bought and used goods and services.
In the backdrop of this economic revolution, hatchbacks, those small cars that have become common sights in our city streets nowadays, have enjoyed a healthy double-digit growth in the last one decade, though the demand has shrunk in recent years, mainly, due to the problems in banking sector.
According to automobile dealers, the availability of a wide range of entry level hatchbacks that suits the budgets of many consumers has made the vehicles most popular in Nepali market.
Besides the price, there are several other factors that have made hatchbacks favorite, and at times necessity, of those who prefer to commute by cars.
Their relatively small size makes it easier to navigate the narrow and crowded city roads. The hatchbacks also seem to have become an answer to the deepening scarcity of parking space.
It should come as no surprise then that hatchbacks occupy a lion´s share of 80 percent in the total sales of four-wheelers in Nepal market. Dealers say around 5,500 units of hatchbacks are sold annually in the Nepali market.
Hatchbacks have been leading the Nepali automotive market primarily due to their lower price tags compared to sedans and SUVs.
Increasingly, newer and smaller hatchbacks are entering Nepali market with lower price tags and this has been the key factor in driving up their sales.
The engine capacity and dimension of hatchbacks are lesser compared to that of sedans and SUVs, thereby, enabling the manufacturers to offer the cars at comparatively lower price.
Another major reason for hatchbacks´ popularity is their smaller size that addresses one of the major headaches of car owners: parking space, be it at home or market place.
“I love sedans but due to lack of parking space at my home, I bought Hyundai Eon which fits into the parking area of my home,” said Nikesh Rajbhandari, a customer of Hyundai Eon.
To cater the increasing demand for hatchbacks, major automobile dealers like Hyundai, Maruti-Suzuki Volkswagen, Honda, Tata and Skoda have shifted their focus to small cars from the premium ones.
Smaller turning radius that makes it easy to drive on congested roads, low maintenance cost, fuel efficiency are among the features that draws customers toward hatchbacks.
“Hatchbacks have emerged as the most sought after automobiles in the domestic four-wheeler market because of their affordability, convenience and fuel efficiency,” said Rupesh Sharma Bhatta, assistant general manager of Laxmi Intercontinental, the importer of Hyundai vehicles in Nepal.
“In addition,” Bhatta said, “Hatchbacks these days come with features of a sedan, therefore, premium hatchbacks have attracted people towards it.
Hyundai is currently selling four different models of hatchback: Hyundai Eon, Santro, i10 and i20.
“Around 80 percent of the passenger cars sold in the Nepali markets are hatchbacks,” said Bhatta.
These days´ dealers say that middle class people are opting hatchbacks as they come within their budget. Even the potential customers of high end vehicles are shying away from sedans and SUVs which are costly and provide less fuel efficiency and are turning to premium hatchbacks.
According to Dipesh Shakya, sales manager at Go Ford, the importer of Ford in Nepal, hatchbacks are the market leader in Nepal mainly because more families in Nepal are finding four-wheelers to be a necessity instead of luxury.
“The reason behind the popularity of hatchbacks is, firstly, they are ideal for those who are buying vehicles for the first time in terms of price and ownership costs. Secondly, due to space constraints hatchbacks are the first choice of customers because of their smooth maneuverability and ability to fit in small parking spaces,” said Shakya.
Ford is currently offering Ford Figo in the hatchback segment.
“The demand of hatchbacks is on the rise as these vehicles are a perfect combination of power and luxury. Currently, owning a vehicle has become a status symbol and both premium and entry level hatchbacks are also doing well in terms of sales,” said Deepak Agrawal, general manager of Skoda MAW, importer of Skoda vehicles in Nepal.
Skoda is currently selling three variants of its Fabia cars: Fabia Active Plus, Ambition Plus and Elegance.
Dealers say that the market of sedans is also considerably picking up lately with the introduction of luxury sedans at affordable price.
“Around 60 percent of the total vehicles sold in the domestic market are hatchbacks,” said Saurav Jyoti, president of the Nepal Automobile Dealers´ Association (NADA) and director of Syakar Company.
Jyoti said that the main reason behind hatchbacks being the leader in the market is its affordability. “The sales of hatchbacks has been further augmented by the significant rise in the prices of sedans and SUVs due to the strengthening of US dollar,” said Jyoti.
Honda is currently selling Honda Brio and Jazz in the hatchback segment.
The price of hatchbacks is not much affected by the strengthening of US dollar as most of them are manufactured in the plants in India, unlike the sedans and SUVs that are mainly imported from third countries.
The availability of hatchbacks at lower prices, starting from Rs 8,58,000, has contributed to the popularity of this segment. Due to the cheaper price, individuals earning a monthly salary of Rs 30,000 and above can easily own a hatchback.
“The market has seen the rise in sales of hatchbacks by almost 40 percent this year compared to the last one. The increase in sales of hatchbacks is primarily due to the numerous benefits that hatchbacks have over other vehicles,” said Prabin Khatiwada, head of passenger car division at Sipradi Trading, which imports Tata vehicles in Nepal.
Tata is currently selling Nano, Indica and Vista in the hatchback segments.
source:republica,13 March 2013
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