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Old 27th June 2011, 15:34   #16
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Default Re: Tata Nano launched in Nepal at INR 5 lakhs!

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Originally Posted by dhanushs View Post
Does anyone know about the level of equipment in the nano that has been launched there? For the price, im sure it must be better equipped.
quite sure it wont be.
i was there last year, and literally froze when i saw an ad for a bajaj discover, priced at close to 90k INR!!
cars are at an even higher tax slab.
that doesnt stop them, though.
I saw so many drool-worthy hiluxes(hiluxii??) there...man!
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Originally Posted by download2live View Post
Seems like there is a business opportunity. Buy a Nano in India and then drive into Nepal. I am sure some enterprising gentlemen will try something like that.
quite a big business opportunity there, sir!
and quite a few "enterprising" gents have been exploiting this opportunity for, what, close to 10-20 years now?
if you know what i mean...

Last edited by mayankk : 27th June 2011 at 15:36.
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Old 27th June 2011, 15:38   #17
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Default Re: Tata Nano launched in Nepal at INR 5 lakhs!

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Originally Posted by dhanushs View Post
Does anyone know about the level of equipment in the nano that has been launched there? For the price, im sure it must be better equipped.
As mentioned earlier, tax on the car is 240%(around 3.5 Lakh), which means the original cost is only around 1.5 L.

Last edited by Daewood : 27th June 2011 at 15:40.
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Old 27th June 2011, 15:46   #18
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Default Re: Tata Nano launched in Nepal at INR 5 lakhs!

Well, in India the primary aim of levying prohibitive customs duty on imported cars was to protect/ nurture the local or Indian automotive industry. This has ensured long term investment and employment generation by world manufacturers in India.

What is the purpose of such high taxes in Nepal? Do they have any local manufacturers/ industry that needs to be protected/ nurtured? Or do they expect Indian car manufacturers to set up shop there?
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Old 27th June 2011, 16:45   #19
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Originally Posted by selfdrive View Post
No wonder there is a secondary market in neighbouring countries for cars stolen from Indian metros!
If anyone here is from those parts or has visited Nepal, can they provide any info about the roads/ infrastrcture over there? Is it feasible to drive a Nano around there?
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Originally Posted by Swanand Inamdar View Post
@Selfdrive: It surely is feasible to drive a Nano in Nepal.
Been to Nepal way back in the early 90's and the cars at that point in time were Toyota's (imported, of course).
The infrastructure then, was pretty decent. This, however, was in Pokhra and Kathmandu only. Not been to others places, so wont be able to comment.

5 lacs for a Nano, sure seems pricey though!
Wonder what a Beamer or the three pointed star would cost then. Shudder, to even think.
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Paying 5 lakhs for Nano is too much.
I was there in Nepal, kathmandu for few days. I can't just say that the roads are totally bad or good. Just take it that some are good while some are with potholes. But once you are out of the city, i felt something same as our Indian roads.
Yea, am studying in Nepal for last so many years and own a car there (obviously not expensive Nepali plate or stolen one!!). There is a very big market for stolen bikes and cars in Nepal. One of my friend who was searching for an used bike was introduced to a bike super market with just exclusively stolen bikes from India. He was given option to select any bike he want at as low as 10k without Nepali number, if with fake Nepali rc and plate, it cost about 20 k for Yamaha R15 n all. The person who was dealing with him even told that he has one pajero stolen from India available at 1.5 lak NRS which was negotiable too!!!! The border area is full of fraud people and smugglers (Excluding me, even though i stay near border area ).

And about roads, its all pathetic now, i will say 90% of the country roads do not get any maintenance except for major towns like Kathmandu and Pokhara. Most of the towns are on top of hills which are separated by hundreds of kilometers and availability of petrol pumps, service stations or road side workshops etc is very much less. if Nano is to be used exclusively in Kathmandu town or Pokhara town, and not for intercity journeys, then its a good option especially for the narrow (read tooooo narrow) roads in Kathmandu town.

One has to be very careful when going out of town cos you might find diesel pumps, but petrol will be too difficult to find outside major towns( am not aware of the range in case of tank full in nano).
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Old 27th June 2011, 17:53   #20
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Default Re: Tata Nano launched in Nepal at INR 5 lakhs!

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Nepal gets petrol from India, so normally it should be more than that of India, but the price there after recent hike is 101 NRS which equals to 63.125 Indian rupee !! I use a car in Nepal for my college use and i fill petrol from Nepal only even when am having an Indian registered car.



Nepal don't have any vehicle manufacturing unit of any brand. I don't think any brand will start a manufacturing unit soon, main reason being the political instability and the Maoist troubles. Most international business establishments especially Indian ventures are facing stiff resistance from Maoist. And finally Nepal is the poorest country in southeast Asia according to a recent survey.
There are not many people who can afford a car there. Government also don't have enough funds for any thing, hence they keep on increasing the tax rate in order to avoid concentration of money among a minority population who can even afford to import vehicles. (Any car you see in Nepal is imported)
Even if you have an Indian vehicle, you are allowed to use it in Nepal by paying 458 NRS daily. Used car market is also not that great in Nepal, a 2004 model santro will cost u more than 7 lak Nepali currency(NC).
Seeing all these things , i don't think any manufacturer is doing this to increase market share, after all whats the use of increasing just second hand market and not selling new vehicles? I find the government only the main culprit in increasing the taxes and not any lobby. Its just a method to increase the government funds.

Doesn't hold true in Nepal. No second-hand vehicles are allowed to be imported legally into the country. Re-conditioned vehicles from Japan and Germany were popular in the 70s and 80s but now you can only import brand-new. There are quite a few stolen vehicles in the border towns, but in Kathmandu and other larger cities the cops are vigilant about Indian made vehicles and check the papers every once in a while.

The taxes have become very high recently as it is a major source of income for the government. The only good part about this whole thing is that the value of 3-4 year old cars hardly depreciates. You could use a car for 2-3 years and sell it at more or less the same price.
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Old 27th June 2011, 21:50   #21
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Quote:
Originally Posted by selfdrive
No wonder there is a secondary market in neighbouring countries for cars stolen from Indian metros!
If anyone here is from those parts or has visited Nepal, can they provide any info about the roads/ infrastrcture over there? Is it feasible to drive a Nano around there?
I had been to Khatmandu last week. It looks like any small town in India. All taxis are worn out Maruti 800 from India. Private cars are mostly small Indian cars, with some bigger Japanese cars. Big car manufacturers are using these countries as dumping ground for older models!
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Old 27th June 2011, 22:20   #22
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Default Re: Tata Nano launched in Nepal at INR 5 lakhs!

I hope with Tata Nano as an option, more Nepalis will be able to own a car. I thought Taxes in India are exorbitant. But looking at Nepal, I think we are better. Now I understand why the vehicles are stolen in India and sent to Nepal.
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Old 27th June 2011, 22:48   #23
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Originally Posted by '72 Bullet View Post
Doesn't hold true in Nepal. No second-hand vehicles are allowed to be imported legally into the country. Re-conditioned vehicles from Japan and Germany were popular in the 70s and 80s but now you can only import brand-new. There are quite a few stolen vehicles in the border towns, but in Kathmandu and other larger cities the cops are vigilant about Indian made vehicles and check the papers every once in a while.

The taxes have become very high recently as it is a major source of income for the government. The only good part about this whole thing is that the value of 3-4 year old cars hardly depreciates. You could use a car for 2-3 years and sell it at more or less the same price.
Yea true, you cant import a used car to Nepal, but u can still use an Indian vehicle throughout Nepal by paying daily tax (bansar) of 458 nrs, be it used new or whatever, it just need to be an Indian plate.

I don't think we can comment about the total number of stolen vehicles in Nepal coming from India, but the fact is that its a safe heaven for stolen Indian vehicles. I have not heard about a single vehicle being returned to India after getting caught in Nepal with fake papers. So the point is that Indian vehicles with fake number plates do exist in Nepal.

And finally about increased taxes, i don't find any great benefit to buy a brand new alto lx at 13-15 lak and selling with little depreciation. After all investing so much we are getting just an alto. What if we get cruze at that price? Then alto will sell at 2-3 lak and we will see a lot of cars on the road. Govt will get more money than what it is currently getting from road tax, and even from tax of spare parts accessories etc. Am not criticizing any country or the system, its just my views. I may be wrong, correct me if am.
I feel if the government reduced the import taxes a bit, then number of vehicles will increase and government will benefit from a lot of direct and indirect income. There will be a lot of direct and indirect job opportunities then and it will all add to prosperity of country. I feel increasing the taxes just to create good value for used vehicles is not an intelligent option.
I agree the government will have done proper studies and will have a proper reason for such high tax policies so lets hope everything is for good in some way or other

Last edited by althaaf : 27th June 2011 at 23:03. Reason: Missed a coma !
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Old 28th June 2011, 06:21   #24
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Originally Posted by althaaf
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Originally Posted by '72 Bullet View Post
Doesn't hold true in Nepal. No second-hand vehicles are allowed to be imported legally into the country. Re-conditioned vehicles from Japan and Germany were popular in the 70s and 80s but now you can only import brand-new. There are quite a few stolen vehicles in the border towns, but in Kathmandu and other larger cities the cops are vigilant about Indian made vehicles and check the papers every once in a while.

The taxes have become very high recently as it is a major source of income for the government. The only good part about this whole thing is that the value of 3-4 year old cars hardly depreciates. You could use a car for 2-3 years and sell it at more or less the same price.
Yea true, you cant import a used car to Nepal, but u can still use an Indian vehicle throughout Nepal by paying daily tax (bansar) of 458 nrs, be it used new or whatever, it just need to be an Indian plate.

I don't think we can comment about the total number of stolen vehicles in Nepal coming from India, but the fact is that its a safe heaven for stolen Indian vehicles. I have not heard about a single vehicle being returned to India after getting caught in Nepal with fake papers. So the point is that Indian vehicles with fake number plates do exist in Nepal.

And finally about increased taxes, i don't find any great benefit to buy a brand new alto lx at 13-15 lak and selling with little depreciation. After all investing so much we are getting just an alto. What if we get cruze at that price? Then alto will sell at 2-3 lak and we will see a lot of cars on the road. Govt will get more money than what it is currently getting from road tax, and even from tax of spare parts accessories etc. Am not criticizing any country or the system, its just my views. I may be wrong, correct me if am.
I feel if the government reduced the import taxes a bit, then number of vehicles will increase and government will benefit from a lot of direct and indirect income. There will be a lot of direct and indirect job opportunities then and it will all add to prosperity of country. I feel increasing the taxes just to create good value for used vehicles is not an intelligent option.
I agree the government will have done proper studies and will have a proper reason for such high tax policies so lets hope everything is for good in some way or other
Govts have always been stupid in framing rules and taxes. Look at our tax structure for petroleum products, over 100% taxes, without reliable public transport system, clean (unadulterated) fuel and motorable roads. Everybody is forced to have own vehicle and pay huge price for fuel.
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Old 28th June 2011, 12:17   #25
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Default Re: Tata Nano launched in Nepal at INR 5 lakhs!

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Originally Posted by althaaf View Post
Yea true, you cant import a used car to Nepal, but u can still use an Indian vehicle throughout Nepal by paying daily tax (bansar) of 458 nrs, be it used new or whatever, it just need to be an Indian plate.

I don't think we can comment about the total number of stolen vehicles in Nepal coming from India, but the fact is that its a safe heaven for stolen Indian vehicles. I have not heard about a single vehicle being returned to India after getting caught in Nepal with fake papers. So the point is that Indian vehicles with fake number plates do exist in Nepal.

And finally about increased taxes, i don't find any great benefit to buy a brand new alto lx at 13-15 lak and selling with little depreciation. After all investing so much we are getting just an alto. What if we get cruze at that price? Then alto will sell at 2-3 lak and we will see a lot of cars on the road. Govt will get more money than what it is currently getting from road tax, and even from tax of spare parts accessories etc. Am not criticizing any country or the system, its just my views. I may be wrong, correct me if am.
I feel if the government reduced the import taxes a bit, then number of vehicles will increase and government will benefit from a lot of direct and indirect income. There will be a lot of direct and indirect job opportunities then and it will all add to prosperity of country. I feel increasing the taxes just to create good value for used vehicles is not an intelligent option.
I agree the government will have done proper studies and will have a proper reason for such high tax policies so lets hope everything is for good in some way or other
Yes, I know you can drive into Nepal with a vehicle from any country as long as you have registered with customs. What I was referring to is getting 2nd hand/re-conditioned cars into Nepal and selling them or buying 2nd hand in India, driving into Nepal and registering it.

I know for a fact that Kathmandu valley is not a safe haven for stolen vehicles. A friend of mine had bought a Tata Sumo 2nd hand from a well known dealer (Tej and Karan), he was caught by the cops during a routine check and his vehicle was seized. He is trying to get back his money from the dealer but it is turning into a legal battle. I have not heard about a single vehicle being returned after having been caught either. However, I have seen hundreds of stolen vehicles rotting away in a stock yard (I think this is standard procedure anywhere in the world). That said, other parts of Nepal is indeed a haven for stolen vehicles. On average 10 bikes are reported stolen every day (they are ridden out of the valley into the villages and used over there). The most stolen bikes are Pulsars because they are apparently easy to steal and are easy to sell and hide as they are popular.

I understand your views on taxation. Unfortunately Nepal has had bad/hardly any governance for the past 20 years. I guess the present government looks at heavily taxing import goods as a means to make money on a short-term basis.

The non-deprecation of value is not a great benefit but the only silver-lining in a very dark cloud.
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Old 28th June 2011, 12:53   #26
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Default Re: Tata Nano launched in Nepal at INR 5 lakhs!

If my understanding is correct , the taxes are levied to protect domestic manufacturers . And if I remember correctly Nepal doesnt have any vehicle manufacturing of their own . So who are they trying to protect with such steep taxes .

I think a normal ATLAS cycle(doodhwale ki cycle ) should cost somewhere around 50 grand in Nepal , almost as expensive as the imported cycles that we get nowadays . Awesome !
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Old 28th June 2011, 19:05   #27
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Default Re: Tata Nano launched in Nepal at INR 5 lakhs!

OMG, dint know Nepal was so heavily taxed. Poor things these people cant even afford to buy a Nano. That is really a sorry state. I wonder how things are in Bhutan if Nepal was this bad.

But putting on my economist hat...
On hindsight, I am guessing if someone buys car from India and pays NPR 450 per day, the break-even occurs only when the car is around 3 yrs old.
So if one sells the car before 3 years he would make a profit for having bought it in India. That sure is one cheaper option.

Additionally, if one is renting it out for third party (I am assuming that will be in demand since its costly to own one) then he can make profit for sure.

Last edited by xingamazon : 28th June 2011 at 19:07.
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Old 28th June 2011, 23:16   #28
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Default Re: Tata Nano launched in Nepal at INR 5 lakhs!

My dad was on deputation and spent 7 years in Nepal. I happened to meet his friend of those days a few years back. I think they are simple, happy content folks. We are the spoilt lot!


Btw, dad was assigned some car (which he rarely used) and a horse.

OT, I might be wrong with my observations, but why is it the hill people are always more human?
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Old 29th June 2011, 13:40   #29
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Default Re: Tata Nano launched in Nepal at INR 5 lakhs!

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Originally Posted by gautamkhadse View Post
If my understanding is correct , the taxes are levied to protect domestic manufacturers . And if I remember correctly Nepal doesnt have any vehicle manufacturing of their own . So who are they trying to protect with such steep taxes .

I think a normal ATLAS cycle(doodhwale ki cycle ) should cost somewhere around 50 grand in Nepal , almost as expensive as the imported cycles that we get nowadays . Awesome !

The steep taxes in Nepal are not to protect domestic manufacturers (of which there is only 1, Hulas which makes pick-up trucks) but to generate income for the government. Another excuse of theirs is that if the taxes were lowered, our roads wouldn't be able to handle the sudden increase in traffic (already a problem)

Cycles are not expensive at all because they fall into another tax bracket entirely. You can get a very good entry-level mountain bike (hard-tail, vee brakes, 21 gears) for 20 K Nepali (12,500 INR), a good Trek 4300 for 40,000 (25,000 INR, this is a hardtail with hydraulic discs and very good for the mountains). For 50,000 INR (80,000 NR) you can get a full-suspension, hydraulic brake, carbon-frame mountain-bike made by well-known brands like Commencal, Trek, Giant etc.

Last edited by '72 Bullet : 29th June 2011 at 13:47.
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Old 29th June 2011, 13:45   #30
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Default Re: Tata Nano launched in Nepal at INR 5 lakhs!

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OMG, dint know Nepal was so heavily taxed. Poor things these people cant even afford to buy a Nano. That is really a sorry state. I wonder how things are in Bhutan if Nepal was this bad.

But putting on my economist hat...
On hindsight, I am guessing if someone buys car from India and pays NPR 450 per day, the break-even occurs only when the car is around 3 yrs old.
So if one sells the car before 3 years he would make a profit for having bought it in India. That sure is one cheaper option.

Additionally, if one is renting it out for third party (I am assuming that will be in demand since its costly to own one) then he can make profit for sure.
Interesting calculation.. Difficult in practice for a Nepali person (buying a car in India, using it on a day-to-day basis). Also after 3 years how would he sell it in Nepal? Renting it out would be a problem as well if it doesn't have a commercial number-plate.

In Bhutan taxes are way,way lower.. You can buy a Hyundai Tuscon (not made in India) for 10 Lakhs or so and Toyota etc. are very popular. Interestingly, Skoda is very popular in Kathmandu these days and all models except for Fabia come directly from Europe because it works out cheaper than to import one that is assembled in India
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