Import Ban: Several Motorcycle Brands Headed For A Rough Ride

While the ongoing import ban of private vehicles and motorcycles above 150cc will hurt the crisis-hit Nepalese automobile market to varying degrees, two-wheelers giants like Yamaha, Honda, and Suzuki will face the heat of the competition if this escalates for a longer period of time.The Government of Nepal had banned the import of ten types of consumer goods including motorcycles above 250cc and petrol/diesel cars to control the foreign currency outflows and maintain foreign currency reserves. The ban which was in place since April 27, 2022, has now been extended until August-end, 2022. In a rather severe move, the government has now included two-wheelers above 150cc on the list as well.However, the import of two-wheelers between 150cc to 250cc is allowed, provided the Letter of Credit (LC) was issued before July 17, 2022. Similarly, the ban won't apply to CKD (Completely Knocked Down) units. Completely Knocked Down is a type of import process in which the parts are imported separately and assembled into one complete vehicle using the imported components in the assembly plant. Currently, Bajaj/KTM, Crossfire and TVS assemble their high-volume models in Nepal. The highly competitive 150cc-250cc segment has a lot to offer. Long gone are the days when you had to content yourself with conventional machines designed to take you from A to B with nothing to tap. However, with the growing popularity of premium motorcycles in this segment, you have many products to choose from. Currently, there are more than 40 motorcycles in this segment from the likes of TVS, Bajaj, Yamaha, Suzuki, Hero, KTM, Benelli, Crossfire, Cross-X, Husqvarna and Motorhead among others. With the ban now in place, several popular motorcycle and scooter models could face the brunt.Models to be impacted by the extended import ban[table id=224 /]NADA Automobiles Association of Nepal (NADA), the governing body of automobile dealers in Nepal, has been continuously requesting the government to ease the ban on the import of private vehicles and motorcycles. Although automobile entrepreneurs in the country were quite hopeful about the ban being lifted before the upcoming NADA Auto Show, the extension of the ban has now added to the further woes of the industry.