AUTO SALES IN NEPAL

CASE STUDY
MARKETING CASE STUDY
 Ans to Qn1:
• Bagmati zone which acquires 60 percent of total auto registration and sales in
country record 28.83 percent decline in vehicle registration with 26.16 percent
slump in four wheelers in year 2011/2012 than pervious year.
• According to department of transport management, First four month car sales
in 2011 is significantly lower than in 2010 which can be seen below
Month July-Aug Aug-Sep Sep-Oct Oct-Nov
2010 15472 16380 14157 15384
2011 11409 13248 13882 14157

TREND SHOWS DECLINE IN CAR SALES

• There is 7.98 percent decline in vehicle registration in fiscal year 2011/2012 than
pervious year
• Out of first four month sales in four wheelers alone, sales was down by 4.22
percent or 130 units in fiscal year 2011/2012 than pervious years
 Ans to Qn.2
• Price hike in automobiles due to Government imposition on high import duties
(240%), lack of confidence among bankers regarding sanction of auto-loan and
high interest rates on available ones are the main cause of decline in sales.
 Ans to Qn. 3
• In order to increase the sales, automobile dealers need to understand the
consumers behaviour of buying and implementing strategy as per their
requirement. Research shows that, there are different customer groups of
vehicle buyers, they have different decision process and they are influenced by
different factors and features during automobile buying. Today’s Consumers now
are more informative and analytical and are brand aware.

Here are some of the recommendation which would help them for better sales and
marketing performance.
• After sales service support shall be well maintained and upgraded since satisfied
customers are the best advertiser of the product. The dealer should try to give the
maintenance service with the latest technology available in the international
market
• Sales person and marketing executive should be trained about the technical
feature and specifications to have better product and customer behavior. So after
this, the staff will be able to give more accurate descriptions about product and
features that can help to satisfy the customer more.
• Bank should reduce the interest rate and EMI scheme time should be increased.
• As people like surprises and gifts, dealers can give some special surprise gifts on
customer's birthday or anniversary.
• Dealers should focus on the delivery time of the vehicles and should not promise
any which they cannot do later.
• To enhance the customer relationship, they can do some social works such as
blood donation, scholarship scheme etc, such social activities help in the brand
awareness.