Škoda Launches New Compact SUV 'Kushaq' in Nepal, Dealer Aims for Competitive Edge

Kathmandu. M A W Group, the authorized dealer for Škoda in Nepal, organized an event at Chandragiri Hills in Kathmandu on Tuesday to launch the European brand Škoda's new compact SUV, the 'Kushaq'.

This vehicle, considered suitable for Nepal's geographical terrain, is expected to add a new dimension to the Nepali market in terms of power, performance, and safety. Built under Škoda's 2.0 strategy, this vehicle features a 1.0-liter TSI engine, delivering 115 brake horsepower and 178 Nm of torque to the Nepali market.

The price set is NPR 4,590,000 for the manual variant and NPR 5,290,000 for the automatic. Amidst the growing craze for electric vehicles, this is an edited excerpt of a conversation Ratopati had with M A W Group Chairman Bishnu Kumar Agarwal regarding the rationale for launching a petrol-powered vehicle, M A W's six-decade-long business journey, customer trust, and the future of the overall automobile sector:

• Škoda's new SUV 'Kushaq' has been launched at this height of Chandragiri. What market expectation do you have for this new vehicle in the Nepali market?

– We are extremely excited today. Škoda is a European brand that has successfully left a deep impression on the minds of Nepali customers. The Kushaq launched today is specially designed for a country with geographical diversity like Nepal. The 1.0-liter TSI engine providing 115 brake horsepower and 178 Nm of torque is not just sufficient but excellent for Nepal's uphill, downhill, and off-road paths. We have set the starting price at NPR 4,590,000 (manual) and NPR 5,290,000 (automatic), which is very competitive and attractive compared to other vehicles available in this segment.

I am confident that this vehicle will offer value for money to the customers. This vehicle will redefine Škoda's driving dynamics and safety in the compact SUV segment.

• Recently, the use of electric vehicles has increased significantly in the Nepali market. Did you prioritize new segments of diesel-petrol vehicles?

– This is a very important question. While the market share of EVs is increasing, and M A W Group itself is selling excellent electric vehicles like Dipal, Ceres, and Namie, we must not forget that about 30 percent of Nepal's automobile market share is still held by ICE, i.e., petrol/diesel vehicles.

The demand and necessity for petrol vehicles remain equally high for travel over long distances, journeys to remote areas where charging infrastructure is insufficient, and off-road tracks, given our geographical conditions.

There is still a large segment in the Nepali market that prefers petrol vehicles for worry-free long-distance travel. EVs are doing well in cities and accessible areas, but we cannot ignore this large 30 percent market.

The Škoda Kushaq is for that segment of customers who seek European technology, safety, and performance. Therefore, both the EV and ICE markets have their own place.

M A W is not prioritizing only ICE by sidelining EVs. The company plans to move forward by addressing the demand of customers who use both EV and ICE vehicles.

• M A W Group has been working in the Nepali automobile sector for over six decades. How do you view this long journey and success?

– M A W Group was established in 1964. We have been continuously serving Nepali customers for over 60 years. The core mantra of our success is customer-centric service and trust. We are an automobile conglomerate that has a presence in all sectors, from motorcycles to heavy equipment and passenger cars to commercial vehicles. We established world-class brands like Yamaha motorcycles, JCB heavy equipment, Jeep, Škoda, and Foton in the Nepali market.

Today, we have over 2,000 skilled employees. We provide service through over 580 touchpoints across the country. We haven't just sold vehicles;

we have sold relationships. We never compromised on the availability of spare parts and after-sales service. I believe this continuity and commitment have brought us this far.

• It is often heard that Škoda parts are expensive. What is the current situation?

– We started the Škoda business in 2007. There have been many ups and downs in this journey of about 18 years. In the initial days, people were concerned about whether the parts would be expensive. But customers who drive Škoda understand its true value. Škoda vehicles are durable. Once purchased, they are reliable for years.

We have made the availability of parts and the quality of service so accessible that customers do not have to worry about maintenance costs. Customers accustomed to driving Škoda often look for Škoda when upgrading, which is a great asset for us.

• Safety is always a matter of concern on Nepali roads. How are the Kushaq and Škoda vehicles in general in terms of safety?

– The first priority for European vehicles is safety. Škoda never compromises on safety. Our vehicles are built with strong steel and modern safety technology.

The same European safety standards have been adopted in the Kushaq. It features six airbags, ESC, and high-quality steel. This vehicle can be the first choice for those seeking family safety.

• The country's economic situation appears sluggish right now. The automobile sector is also affected. How do you view the coming days?

– Certainly, there has been some slowdown in the economy recently. But I am always optimistic. Cycles come and go in business. The COVID period and the subsequent economic recession added challenges. But signs of gradual improvement are starting to appear. The liquidity situation is easing, and the government also appears positive about making the economy dynamic.