Chevrolet's Beat and Hyundai’s Sonata
SANGAM PRASAIN
JULY 01 -
Two new car models -- one a sporty hatchback and the other a sedan -- were launched in the Nepali market on Monday. Vijay Motors, sole distributor of General Motors for Nepal, unveiled the much awaited Chevrolet Beat while Laxmi Intercontinental, one of Hyundai's authorised distributors, rolled out the all-new Sonata.

In Nepal's predominantly small car market, the arrival of the Beat, described by the company as being spirited, stylish, aggressive and bold, has given much needed variety to customers.

The 1199 cc DOHC engine Beat is equipped with automatic climate control, integrated centre stack audio with USB and aux-in port, tilt steering and satin silver roof rails. It is available in three trim levels of 1.2, 1.2LS and 1.2LT.

The Beat, known as the best mileage car in its segment, comes with 14-inch wheels that give better ground clearance, highly spacious interior, USB port, auxiliary port and roof rails.

Available in seven colours -- Olympic White, Linen Beige, Caviar Black, Misty Lake, Moroccan Blue, Green Cocktail and Super Red -- the Beat has an anti-lock braking system which is a rare feature in mini-cars.

As part of the launch offer, Vijaya Motors has provided a special 10-day offer on the Beat that includes free basic accessories such as music system, number plate, speaker and carpet; three-year or 45,000 km free maintenance including engine oil and three-year or 100,000 km warranty. The company will also pay the registration fee and road tax for a year under the special offer.

Hyundai's all-new Sonata adopts its new "fluidic sculpture" design language and boasts outstanding performance with segment-leading safety and fuel efficiency.

Available in two different models -- GL and GLS -- the Sonata delivers powerful performance through its 2.0 litre Theta II MPI (multi point injection) petrol engine. The new Sonata has the highest fuel economy in its segment which stands at 10 km per litre.

The Sonata GL has 16-inch alloy wheels, dual airbags, anti-lock braking system, keyless entry, steering audio control, high mount stop lamp, electric outside mirror with folding auxiliary and USB port and air conditioner.

Along with all the features of the GL, the Sonata GLS has some additional features like 17-inch alloy wheels, amplitude selective damper, electronic stability control, driver and passenger power seat, active headrest, leather seats, auto light control, audio display, rear parking assist system, rain sensor, automatic air conditioner and panoramic sunroof.

The Sonata's electronic stability control (ESC) is designed to help keep your vehicle going right where you want it to in slippery conditions.







Chevrolet Beat

1.2 Rs 1.84 million

1.2 LS Rs 1.92 million

1.2 LT Rs 2.10 million

1.2 LT (with options) Rs 2.27 million





Hyundai Sonata

Sonata GL Rs 4.49 million

Sonata GLS Rs 5.09 million







Beat is a gorgeous looking brand new car

Karl Slym

Karl Slym is president and managing director of General Motors India.



Tell us about the Beat.

The Beat is a gorgeous looking brand new car of General Motors India. Even though it was good global car, we made some changes considering road conditions in Nepal and India. Over the last 18 months, we've made some changes on its suspension to have better ground clearance, also on its transmission and its engine calibration.



How has Nepal been for General Motors?

With the Beat, we now have all the brands under the Chevrolet portfolio in Nepal. Now customers can choose from the Spark, Beat, Aveo U-Va, Aveo, Optra, Captiva to Cruze. As of now, we're at No. 5 in Nepal's automobile market and very pleased with our growth. We've introduced three new cars, the Cruze, Capitva and now Beat. Now, we've to make sure these cars are known in Nepal and get growth in Nepal.



When was the Beat launched in India? How has it been faring in the Indian market?

We launched the Beat in India this January at the Delhi Motor Show. It is doing very well. We manufacture it in our Pune plant. Due to growing demand, we are starting a second shift for its production.



Where is General Motors in India?

As in Nepal, we're at No. 5 in India also. But we're the fastest growing name plate in India. This year, till this date, we've grown by over 120 percent, whereas the Indian automobile industry is growing by 40 percent.

This year, we'll double our sales of last year. We've already sold more than 100,000 Sparks in India. Hence, we're the brand that is making noise in India. And, I don't see why there is any reason we can't make the same kind of noise in Nepal.





Sonata pursues a younger and sensuous image

Rupesh Sharma Bhatta

Rupesh Sharma Bhatta is senior manager, Business Development and Planning at Laxmi Intercontinental.

Tell us about the new Sonata.



The Sonata is our premium product in the car segment. The new Sonata pursues a younger and sensuous image in its interior and exterior profiles. Currently, we have two variants of the Sonata, the Sonata GL and the Sonata GLS.

The GL costs Rs 4.49 million while the GLS costs Rs 5.09 million. With the incorporation of state-of-the art technologies, the new Sonata is expected to further elevate the image of the Hyundai brand.



What is the market share of Hyundai in Nepal? When did Laxmi Intercontinental become associated with Hyundai?

Hyundai vehicles have a substantial presence in the Nepali market. Hyundai is one of the leading brands in the small car segment. Laxmi Intercontinental started selling Hyundai vehicles in Nepal from early 2009.



Has Laxmi Intercontinental made a presence across Nepal? How many showrooms do you have?

Currently, we have two showrooms in the Kathmandu Valley and 11 elsewhere in the country. We have a presence in Pokhara, Narayanghat, Butwal, Bhairahawa, Birgunj, Hetauda, Birtamod, Damak, Biratnagar, Dharan and Dang through our dealers.



What other services are you providing to your customers apart from sales?

We provide 12 free servicings for up to three years and a three-year or 60,000 km warranty. We provide after sales service through our service centres at Basundhara and New Baneshwor. Our service centres are equipped with the latest equipment and trained technicians, and we also maintain an adequate inventory of spare parts.

Political unrest has hit industry

SANGAM PRASAIN
JULY 15 -
Dinesh Shrestha is managing director of Pacific Commercial Company, authorized dealer of Mahindra two-wheelers in Nepal. Shrestha, who is also an executive committee member of the Federation of Nepalese Chambers of Commerce and Industry, has interests in trading, education, manufacturing and health. Sangam Prasain of The Kathmandu Post talked with Shrestha on the business environment and Pacific's business interest. Excerpts:

The Economic Survey 2009/10 shows a rise in vehicle sales. How has your company that deals in Mahindra scooters performed?

There has been a significant rise in the sale of vehicles from four-wheelers to two-wheelers. With ever increasing population and urbanisation, owning a vehicle has become a necessity. As we don't have an efficient mass transportation system in place, people living in urban areas have no choice but to go for private vehicles. This has increased the demand for two-wheelers in major cities including Kathmandu. Hence, business has been good for every automobile company this fiscal year. In our case, we've sold around 1,500 units of Mahindra scooters in the last eight months.



How many models of Mahindra scooters are available in the market?

We are currently selling the four-stroke 125 cc Mahindra Duro, 124.6 cc Mahindra Flyte and Mahindra Rodeo. Though we've recently started selling Mahindra scooters in Nepal, our market share is between 20-25 percent in the overall scooter segment.

Due to safety features, mileage and pickup, demand for scooters has been increasing gradually. Even then, sales are relatively low compared to motorbikes; but we're optimistic that they will go up.



Your group has recently entered the FMCG sector with snacks. How is the new business going, and what are the new products you are planning to launch?

We have recently launched our FMCG products under the Mum's brand in the Nepali market. Mum's brand is a processed food and snacks from India's Amrapali Group. The response so far has been positive. With snacks and processed foods becoming popular in Nepal, we aim to expand and diversify the existing product line. We want to provide customers the finest taste with the highest quality. As the Amrapali Group has recently started juice production, we'll be launching it in the Nepali market in the near future.



The government has failed to present a complete budget once again. What impact will it have on the private sector?

It shows that the economic agenda has never been a priority for our political parties. This is the second instance that the country has missed a complete budget. When the entire industrial sector is on the brink of collapse and investors are unwilling to invest in the country, a full-fledged budget was the need of the hour.

Entrepreneurs always study the budget before making their business and expansion plans. The delay in the budget will affect the entire industrial and business sector. The private sector has suggested to the government to introduce import substitution measures among other issues to narrow the trade deficit; but with the special budget, we can't think of lessening the trade deficit.



What are the major problems that the private sector is facing and which need to be addressed immediately?

Political instability has made the business climate pessimistic and spread a sense of insecurity. As in the previous years, load-shedding and labour problems have made the cost of doing business expensive. This year, we also faced difficulties in getting loans from banks due to the liquidity crunch. Despite the central bank asking commercial banks to finance the industrial sector, no bank is willing to invest. None of the banks wants to bear losses putting money in industry in this business climate.

Paddy sowing recorded at a meager 40pc

SANGAM PRASAIN
KATHMANDU, JUL 19 - With the rain god being more favourable this year, paddy plantation in the country has been recorded at 40 percent even with the main planting season in the Tarai yet to start.

The preliminary estimate of the Ministry of Agriculture and Cooperatives (MoAC) said that plantation this season had been good compared to the same period last year.

Dr. Hari Dahal, spokesperson at the MoAC, said that paddy plantation in the Tarai had just started, and in response to the current monsoon, the plantation rate would increase in the months of August and September.

Of the total 3.1 million hectares of arable land, paddy plantation occupies over 1.5 million hectares.

The Tarai, which is a major paddy producing region, has 71 percent of the total arable land. Similarly, the hill region has 25 percent and the high hill region a 4 percent share of the total arable land.

This plantation season, paddy plantation in Jhapa has been recorded at 33,600 hectares out of the total 96,161 hectares. Morang has recorded

over 31,000 hectares out of 88,000 hectares and Sunsari has recorded 25 percent out of its total 53,600 hectares, Dahal said.

Similarly, plantation in Siraha has been recorded at 10 percent of its total 70,000 hectares and Sarlahi with 12 percent of its total 68,000 hectares. Plantation in Kapilvastu, Rautahat and Dhanusha has been recorded at 10 percent, 15 percent and 20 percent respectively.

According to the ministry, paddy plantation in the Central Development Region has been recorded at 39 percent, 25 percent in the Eastern Development Region, 49 percent in the Western Development Region, 52 percent in

the Mid-Western Development Region and 48 the percent in Far-Western Development Region.

Plantation has been recorded at cent percent in Rolpa, Dolpa and Humla. The average paddy plantation in the Tarai, hills and high hills has been recorded at 33 percent, 57 percent and 62 percent respectively. The Kathmandu Valley

has recorded 80 percent paddy plantation.

Production of paddy declined by 11 percent last year due to a long drought that delayed paddy planting. Output dropped to 2,716 kg per hectare from 2,907 kg per hectare recorded last year.

Paddy plantation

Region Plantation %

Eastern 25

Central 39

Western 49

Mid-Western 52

Far-Western 48

Arrivals up, stay duration down

 SANGAM PRASAIN
KATHMANDU, JUL 15 - Tourist arrivals in Nepal increased by 1.9 percent in 2009, however, their average length of stay has declined.
According to the Economic Survey 2009/10, the average length of stay has gone down from 11.8 days in 2008 to 11.6 days in 2009.
Tourists had started staying longer in the country in 2006 following the comprehensive peace accord ending the Maoist conflict. Since then, however, it has been decreasing constantly.
Tourism entrepreneurs say that tourist stay in Nepal has been affected by political uncertainty, strikes and bandas. Hotels too suffered labour unrest in 2009 forcing visitors to cut short their Nepal tour.
“One of the reasons behind the drop in tourist stay could be the global recession which prompted vacationers to opt for shorter holidays,” said Raju Bikram Shah, general manager of the Shangri-La Hotel. 
“We didn’t see a drastic change in tourist stay,” said David Yonjan of Yeti Travels. “The length of stay depends on the tour package.”
Tourist entrepreneurs are hopeful of the length of stay increasing with the number of tourists coming for recreation growing. As per the Economic Survey, 34 percent of the arrivals in 2009 came for recreation compared to 29.6 percent in 2008.  Tourism entrepreneurs say that if the political situation remains stable, the trend of taking longer holidays could increase.
“The significant rise in the number of visitors coming for recreation is a result of the increasing options for leisure activities in Nepal,” said Prachanda Man Shrestha, chief executive officer of the Nepal Tourism Board. According to the Economic Survey, there has been a marginal increment in the number of visitors coming for pilgrimage from 9 percent in 2008 to 10.4 percent in 2009. Tourists putting down trekking and mountaineering as their purpose of visit amounted to 20.9 percent in 2009.
Likewise, 4.7 percent came for trade, 7.6 percent for formal visit and 1.4 percent for meetings and seminars.


Declining stay
Year    2009    2008    2007
Days    11.60    11.78    11.96
Purpose of visit
Year    2009    2008    2007
Recreation    34.0     29.6    30.6
Trek/Mountaineering    20.9     21.0    19.20
Pilgrimage    10.4    9.0    10.0
Trade    4.7    4.6    4.6
Formal visit     7.6    8.6    8.6
Meeting/seminar    1.4    1.4    1.4
Other purposes    15.6    19.9    19.5
Undefined purposes    5.0    5.9    6.3

'A peanut is not a meal’

SANGAM PRASAIN
KATHMANDU, JUL 13 -
The business community and economists have pointed out that delay in presenting a full-fledged budget will hinder the country’s economic growth and private sectors’ investment plans.

At an interaction on ‘Delay in Budget and its Impact in Country’s Economy’, organised jointly by Federation of Nepalese Chambers of Commerce and Industry (FNCCI) and Society of Economic Journalists of Nepal (SEJON) on Tuesday, economists said that disturbances in regular budget presentation cycle would ultimately hamstring the overall economy.

At a time when country was looking for a full-fledged budget to address bottlenecks in the economy, the government’s special budget will widen existing trade deficit, constrain revenue mobilisation and hit private sector confidence, said economists. They pointed out that the political leadership had failed to realise the country’s economic agenda and priorities.

“Investors are in a dilemma whether to invest or not as there is no concrete programme and policy of the government in the special budget,” said Kush Kumar Joshi, president of the FNCCI.  Joshi said that trade deficit would further widen in the next fiscal year.

“The private sector has demanded stimulus packages to address the growing trade deficit issue, industrial insecurity and load-shedding, all in vain,” added Joshi. 

Economist Biswombhar Pyakurel described the advance budget as too meagre. He said that the public distribution system had become a joke. “No political parties is serious about the country’s economic agenda,. This will adversely impact the country’s economy in the long run,” he added. This is the second time in three years that a full-fledged budget has been delayed.

Economist Dilli Raj Khanal said that if the political class fails to address the country’s economic agenda, a crisis would erupt. “There is  need for political consensus to address the deepening problem,” said Khanal. Economist Chiranjivi Nepal said that as the country is witnessing a huge balance of payment deficit and decline in foreign currency reserves, delay in full-fledged budget would worsen the economic crisis. “It is unfortunate that no political party is serious about economic issues,” he lamented.

Finance secretary Rameshwor Khanal said that investment would decrease if the economy does not stay stable. “Delay in budget announcement will discourage both domestic and international investors, and without investment we cannot have economic growth,” he said.

He said that the targeted economic growth for the next fiscal could be affected. “The government plan to provide incentives and facilities to production and agriculture sector for import substitution and accomplishing the three-year plans will also be affected,” he said.

Nepal 14th in tourists’ beeline

SANGAM PRASAIN

KATHMANDU, JUL 07 -

The number of Nepali tourists visiting India has been steadily increasing to earn the country a slot in the southern neighbour’s list of top arrivals.

Nepal ranked No. 14 in foreign visitor arrivals with 87,487 Nepali tourists travelling to India by air in 2009, according to the Indian Tourism Ministry.

Nepali outbound to India was greater than Indian inbound to Nepal last year in terms of air travellers. According to the Nepal Tourism Board (NTB), 86,696 Indian holidaymakers arrived in Nepal by air in 2009. CEO of NTB Prachanda Man Shrestha, however, said that Nepal was not in a deficit position as around 300,000 Indian tourists visit the country overland annually.

Tour operators cited three reasons for the substantial rise in the number of Nepali visitors to India — popularity of pilgrimage destinations, growing trend of using India as a transit point for onward flights to Europe and the US due to cheap tickets, and rising frequency of guardians visiting their children enrolled in Indian schools Sudhir Upadhyay, managing director of Ama Travels whose main business is operating tours to India, said that more medium-class Nepalis were travelling to India as tourists. Earlier, only high-income people used to visit India.

C.N. Pandey, managing director of Samrat Travels & Tours, said political instability had forced large numbers of Nepali students to pursue their studies in India.

Economy Survey 2009/10 

"Target bar was set too low, scoffs study"

KATHMANDU, JUL 11 -

Though agriculture and non-agriculture sectors failed to achieve set targets,   Nepal´s economy expanded to Rs 1,183 billion and GDP per capita touched Rs 41,851 in 2009-10.

The Economic survey released on Sunday shows the pace of growth in both the agriculture and non-agriculture sector remained slow.

According to the survey, growth of non-agriculture sector is expected to grow by 5.1 percent. Growth in sub-sectors like mining and quarries, industry, gas and water, construction, hotel and restaurant, financial intermediation, real estate, leasing, and commercial services pushed the growth of non-agriculture sector to 5.1 percent.

In the non-agriculture sector, construction is estimated to grow at 6.6 percent. The sector registered good growth due to rapid construction of homes, residential apartments and office buildings in Kathmandu valley and other urban areas.

Growth of commercial services like real estate, leasing and other services that had nominal growth of 1.8 percent in the previous fiscal year is estimated to grow by 4.9 percent this year.

Among the sectors that recorded lower growth in 2009-10 in comparison to 2008-09 are  agriculture and forestry, fisheries, wholesale and retail trade, transport, communication and warehousing, public administration and defense , education,  health and social works, and other community, social and personal services.

The growth of agriculture sector that has the biggest weightage in the total gross domestic product (GDP), according to the survey would be limited to 1.2 percent mainly due to decline in production of paddy and maize.

According to the survey, cereal production decreased

to 77,62000 metric tonnes against 81,15000 metric tonnes last fiscal. The production of paddy and maize decreased while production of wheat,

barley and millet witnessed growth. The cultivation area for cereal production also shrank to 3383,000 hectares from 3418,000 hectares. 

Among cash crops, the total production grew to 5224,000 metric tonnes this year from 4931000 metric tonnes last year in the expanded cultivation of 458000 hectares of land from 434000 hectares. The production of sugarcane, oilseeds (telahan), potatoes and jute increased while production of tobacco was constant this year .

Among other cash crops, pulses (dalahan), fruits and vegetables all saw a growth and their total production grew to 3968000 metric tonnes from the 3695000 metric tonnes last year.

The country saw growth in production of meat, dairy products, eggs and fish last

year as well. Irrigation facility expanded to additional 13119 hectares of land although the facility was expanded by just 2612 hectares last year.

The manufacturing sector is expected grow by 2.6 percent this year as compared to 1 percent negative growth last year.

The production of noodles increased to 42,000 metric tonnes from 40669MT.

Tea production grew to 16,000MT from 15506MT, liquor production grew to 12,000MT from 11907Mt, cigarettes, shoes, soaps, cements and industrial equipments all saw a growth.

The number of hotels went up to 744 this year from 669 last year. Star hotels grew by just 1 to 97, while non-star hotels grew to 647 from 573.

While the number of hospitals remained unchanged

at 102, the number of health posts went up to 1176 from 676 last year, but the number of sub-health posts decreased to 2617 from 3114 last year.

The number of manpower in the health sector also could not grow much as it reached 92181 from 92010.

The survey also revealed that in total, roads expanded to 20138 km from 19209 km in the road expansion year. Black-topped roads expanded to 6304 km from 5859km.

Gravelled roads expanded to 4832 km from 4717km and fair weather roads expanded to 9002km from 8635 km.



Sectors that saw growth

•    Mining and quarrying  (from 0.7 percent to 4.2 percent)

•    Industry (from -1.0 percent to 2.6 percent)

•    Electricity, gas and water (from -0.9 percent to 0.5 percent)

•    Construction (from 0.9 percent to 6.6 percent)

•    Hotel and restaurant (from 3.0 percent to 8.5 percent)

•    Financial intermediation (from 1.5 percent to 1.6percent)

•    Real estate, rent, professional services (1.7 percent to 4.8percent)

Sectors whose growth declined

•    Agriculture and forestry (from 3.0 to 1.1 percent)

•    Fisheries (from 5.7 percent to 5.3 percent)

•    Wholesale and retail trade (from 5.9 percent to 5.6 percent)

•    Transport and communication (from 7.6 percent to 6.5 percent)

•    Public administration and defense (from 7.3 percent to 4.2 percent)

•    Education (from 11.3 percent to 6.5 percent)

•    Health and social works (from 11.2 to 5.6 percent)