PM Mustang connects well with Made in Nepal tag
BIRATNAGAR, Sept 1:
Prime Minister Baburam Bhattarai´s prompt but firm connect with Made-In-Nepal tag has evoked strong emotions in the workshops of the country´s sole automobile manufacturer Hulas Motors. The company was contemplating closure in the face of unfavorable government policies and onslaught unleashed on its market share by glitzy foreign cars.
The management´s will to continue producing the vehicles after it could not sell even a single unit during trade fairs in Biratnagar and Butwal last year was thoroghly shaken.
"During the fairs, most of the Indian vehicles were sold but customers didn´t approach us to buy our vehicles," said Shyam Kamat, chairman of Workers Association of Hulas Motors. Compared with other vehicles in its price range, Hulas Motors vehicles would look expensive. According to the officials, the company has been able to sell 125 vehicles a year when the excise duty was nil. "But now we can´t sell even 10 vehicles in a year."
Hulas Motors management has been complaining that after the government increased the excise duty to 63 percent in 2009/10, it has been very difficult to continue the business. "With a rise in excise duty every year, it is hard to compete with foreign brands," Prafulla Chandra Das, general manager of Hulas Motors, said.
"I thank and congratulate the PM for encouraging local products with his preference for our Mustang vehicle," he said. He said if the PM had not made the decision to use a Made-In-Nepal vehicle, the company was in no mood to continue its motor production business. Hulas Motors was on the verge of bankruptcy and closure when a sudden and inexplicable interest shown by the new Prime Minister in its flagship brand Mustang jeep has rekindled the hopes of viability and revival not only for Hulas Motors but also for a whole lot of manufacturers of other products. He has reposed faith in Nepali workmanship and the country´s ability to produce things that it needs.
The company has to pay 65 percent in excise duty, which makes its vehicles costlier. Hulas Motors officials approached the government many times for exemption of excise duty but no one paid heed to their requests.
"As PM has chosen our brand, we hope others will follow suit," Surendra Golcha, owner of Hulas Motors, told Republica. "We approached several governments requesting them for favorable policies to promote local brands. But only now with Baburam Bhattarai in PM´s post, it seems the our requests can be heard." He flayed the past governments for not listening to the plight of local automobile makers.
In the changed scenario, the company has requested the government to use its vehicles for government projects. The officials said if the government is in favor of local brands, it should use Mustang vehicles to prevent the company from a certain downfall.
"The automobile used by the PM should also be used by other ministers, police personnel and governmental staff," said Das.
Source: Republica
Prime Minister Baburam Bhattarai´s prompt but firm connect with Made-In-Nepal tag has evoked strong emotions in the workshops of the country´s sole automobile manufacturer Hulas Motors. The company was contemplating closure in the face of unfavorable government policies and onslaught unleashed on its market share by glitzy foreign cars.
The management´s will to continue producing the vehicles after it could not sell even a single unit during trade fairs in Biratnagar and Butwal last year was thoroghly shaken.
"During the fairs, most of the Indian vehicles were sold but customers didn´t approach us to buy our vehicles," said Shyam Kamat, chairman of Workers Association of Hulas Motors. Compared with other vehicles in its price range, Hulas Motors vehicles would look expensive. According to the officials, the company has been able to sell 125 vehicles a year when the excise duty was nil. "But now we can´t sell even 10 vehicles in a year."
Hulas Motors management has been complaining that after the government increased the excise duty to 63 percent in 2009/10, it has been very difficult to continue the business. "With a rise in excise duty every year, it is hard to compete with foreign brands," Prafulla Chandra Das, general manager of Hulas Motors, said.
"I thank and congratulate the PM for encouraging local products with his preference for our Mustang vehicle," he said. He said if the PM had not made the decision to use a Made-In-Nepal vehicle, the company was in no mood to continue its motor production business. Hulas Motors was on the verge of bankruptcy and closure when a sudden and inexplicable interest shown by the new Prime Minister in its flagship brand Mustang jeep has rekindled the hopes of viability and revival not only for Hulas Motors but also for a whole lot of manufacturers of other products. He has reposed faith in Nepali workmanship and the country´s ability to produce things that it needs.
The company has to pay 65 percent in excise duty, which makes its vehicles costlier. Hulas Motors officials approached the government many times for exemption of excise duty but no one paid heed to their requests.
"As PM has chosen our brand, we hope others will follow suit," Surendra Golcha, owner of Hulas Motors, told Republica. "We approached several governments requesting them for favorable policies to promote local brands. But only now with Baburam Bhattarai in PM´s post, it seems the our requests can be heard." He flayed the past governments for not listening to the plight of local automobile makers.
In the changed scenario, the company has requested the government to use its vehicles for government projects. The officials said if the government is in favor of local brands, it should use Mustang vehicles to prevent the company from a certain downfall.
"The automobile used by the PM should also be used by other ministers, police personnel and governmental staff," said Das.
Source: Republica
