Automotive sector in Nepal is in a growing stage. There are many types of vehicles that are being introduced day by day. Beside the fierce competition in car market, hatchbacks are gaining popularity. Hatchbacks are less expensive to buy, more economical to maintain, easy to drive on crowded streets of Kathmandu and take less parking space. With many, more such advantages Hatchbags have emerged as the most sought after the automobiles in the domestic four-wheel market. In the backdrop of this economic revolution, hatchbacks have become common sights in our city streets nowadays. It should come as no surprise that hatchbacks occupy a lion´s share of 80 percent in the total sales of four-wheelers in Nepal market.
According to automobile dealers the availability of a wide range of entry-level hatchbacks that suits the budgets of many consumers has made the vehicles most popular in Nepali market. Dealers say around 5,500 units of hatchbacks are sold annually in the Nepali market. Hatchbacks have been leading the Nepali automotive market primarily due to their lower price tags compared to sedans and SUVs. Increasingly, newer and smaller hatchbacks are entering Nepali market with lower price tags and this has been the key factor in driving up their sales. The engine capacity and dimension of hatchbacks are lesser compared to that of sedans and SUVs, thereby, enabling the manufacturers to offer the cars at comparatively. To cater the increasing demand for hatchbacks, major automobile dealers like Hyundai, Maruti-Suzuki Volkswagen, Honda, Tata and Skoda have shifted their focus to small cars from the premium ones. Hyundai is currently selling four different models of hatchback: Hyundai Eon, Santro, i10 and i20. Skoda is currently selling three variants of its Fabia cars: Fabia Active Plus, Ambition Plus and Elegance. Honda is currently selling Honda Brio and Jazz in the hatchback segment. Tata is currently selling Nano, Indica and Vista in the hatchback segments. The availability of hatchbacks at lower prices, starting from Rs 8,58,000, has contributed to the popularity of this segment. Due to the cheaper price, individuals earning a monthly salary of Rs 30,000 and above can easily own a hatchback.