Last month, auto dealers had jacked up prices from Rs20,000 to Rs250,000 per vehicle. They pointed to a hike in prices by Indian automakers in January citing increased production costs for the upward revision.

“We were compelled to hike prices as the manufacturers in India raised their rates due to increased input costs. This will surely affect sales. But we will continue our various schemes to encourage customers,” said Rupesh Sharma Bhatta, assistant general manager of sales and marketing at Laxmi Intercontinental, the authorised distributor of Hyundai in Nepal. The company has launched a week-long exchange and discount offer.

Similarly, Tata’s authorised distributor Sipradi Trading has introduced a promotional campaign under which customers will be able to win Yamaha Ray Z scooters, 32-inch televisions and a Europe trip for a couple through a lucky draw. “We will continue the offer till the Nepali New Year,” said Prabin Khatiwada, head of the passenger vehicles business unit at Sipradi. The company had hiked prices of various cars last January.

Life Automobile, the authorised distributor of Fiat in Nepal, has opened an exchange camp for its Punto Evo car. The company raised the price of the Evo by Rs100,000. Likewise, Sunil Chhetri, deputy general manager of GO Automobiles, the authorised distributor of Ford in Nepal, said, “As the Nepali New Year is also arriving, we are planning to launch various schemes and discount offers soon.”

Bajaj authorised distributor HH Bajaj has launched its Note ko Bot scheme under which customers will have a chance to win cash prizes of Rs7,000 to Rs100,000. Bajaj hiked prices of various models in the range of Rs1,000 to Rs4,000 last month. Similarly, MAW Enterprises, the authorised distributor of Yamaha two-wheelers in Nepal, offers gold and cash prizes on purchase of its bikes and scooters. Customers will be able to win cash prizes of up to Rs100,000.