Kathmandu: Auto dealers, who had celebrated record bookings during the NADA Auto Show and NAIMA Nepal Mobility Expo just a month ago, are now facing disappointment.
Despite their efforts to boost the market ahead of the festival season, they have been unable to deliver vehicles, and instead, cancellations are piling up — a serious blow for the industry.
Dashain, considered Nepal’s biggest festival, is also the peak sales season for automobiles. For dealers, the festive mood starts as early as mid-July, when auto expos set the stage for heavy bookings. Traditionally, dealers roll out discounts and festive offers from the expos until Tihar to maximize sales.
This year was no different. The Nepal Mobility Expo (Aug 5–10) and NADA Auto Show (Aug 19–24) generated high enthusiasm. Dealers secured thousands of bookings, expecting to complete deliveries by Dashain. However, the Gen-Z protests of Sept 8–9 disrupted the entire market. Now, showrooms that usually bustle with buyers during festivals are deserted, and cancellations are mounting.
“We had expected at least 25–30 percent of bookings to turn into actual sales, but so far not a single car has been delivered. On the contrary, cancellations are growing,” one dealer told Clickmandu.
Organizers had estimated nearly 8,000 vehicles were booked during the two expos. Imports were being ramped up for delivery, but now dealers are worried as large numbers of bookings are being withdrawn.
Festival season is the main period for sales; outside of it, many dealers struggle to even cover showroom rent and staff costs. With massive cancellations during what should have been the busiest time, dealers say this year’s Dashain has lost its shine.
One dealer explained, “On one hand, transport costs have risen due to floods and landslides, and on the other, the Gen-Z protests triggered mass booking withdrawals. For us, Dashain this year doesn’t feel like Dashain at all.”
The expos had created optimism and drawn huge consumer interest, with attractive loan schemes and offers. But that momentum has collapsed. Dealers report that nearly all government employees have cancelled their bookings, while many private buyers have also pulled out.
This trend is linked to uncertainty following the protests, which forced the government to allocate large sums for reconstruction. Questions have arisen over whether civil servants will receive timely salaries, bonuses, and allowances, prompting many to abandon vehicle purchases. Widespread vandalism and arson of vehicles have further deepened public hesitation.
Even before the protests, dealers had imported large volumes of electric vehicles fearing higher taxes in the FY 2025/26 budget. In May alone, over 3,600 EVs were brought in. To reduce financial strain from unsold stock, dealers offered discounts up to Rs 2 million at the expos, along with free insurance, chargers, and servicing packages.
But with sales stalling, dealers now face mounting costs — including parking fees and bank interest on loans. Instead of easing their burden, the festival season has left them with unsold stock and heavier liabilities.
To attract buyers, nearly all auto brands had launched special Dashain-Tihar schemes.
LS Auto offered up to Rs 100,000 cash discount, exchange bonus, free insurance, home appliances, and even overseas travel packages.
Honda rolled out its “Changa Uddchha Farar” Dashain offer, with up to Rs 400,000 discount, free servicing, insurance, and exchange bonuses.
Hyundai Nepal promised cash discounts, scratch card rewards of up to Rs 100,000, and a chance to win cars.
MG announced offers including Rs 400,000 discount, free insurance, and free EV home chargers.
BYD provided extended warranties and free servicing, while Tata, Toyota, and Suzuki unveiled their own festive schemes with discounts, financing, and free services.
Despite these aggressive offers, the protests have dampened consumer confidence. Dealers say sales remain at a standstill, leaving them with heavy losses during what should have been their most profitable season.
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