NADA Presents 22-Point Proposal to Prime Minister to Revive Automobile Industry
NADA 22-Point Proposal
22nd September 2025, Kathmandu
In a significant move to revitalize Nepal’s struggling automobile sector, a high-level delegation from NADA, led by its President Karan Chaudhary, met with Prime Minister Sushila Karki.
NADA 22-Point Proposal
The delegation presented a comprehensive NADA 22-point proposal aimed at ensuring business security, enhancing banking facilitation, and implementing crucial policy reform.
The meeting was attended by key government figures, including Finance Minister Rameshwor Khanal, Energy Minister Kulman Ghising, Home Minister Om Prakash Aryal, and Chief Secretary Eknarayan Aryal.
This meeting signifies a direct channel of communication between the private sector and the highest levels of government, seeking to address a complex economic situation impacting the automobile industry.
The Automobile Sector’s Contribution and Concerns
President Karan Chaudhary highlighted NADA’s long-standing role as a 49-year-old organization. He emphasized that it represents all facets of the automobile business across all seven provinces.
Despite its significant contribution to the national economy, Chaudhary expressed concern that NADA had not been properly acknowledged by the government.
He noted the lack of adequate government information about the association’s impact and functions. He stressed that a collaborative approach could lead to a quick revival of the sector.
He stated that if the government implements even a few of NADA’s recommendations, the industry could experience a significant boost.
Key Policy Reforms Proposed
The 22-point proposal includes specific, actionable recommendations. One of the key points is the request to increase the Loan-to-Value (LTV) ratio for hire purchase loans on petrol and diesel vehicles.
The proposal suggests raising the ratio from the current 60% to 80%. This would make it easier for consumers to purchase vehicles, stimulating demand.
NADA also sought government attention regarding the new Nepal Vehicle Emission Standards 2082. They urged the government to consider and implement the suggestions NADA had already submitted to the Ministry of Forests and Environment.
The association also pushed for representation in the newly formed Industry Promotion Council, ensuring the voice of the automobile sector is heard in key policy-making bodies. These points reflect the need for targeted policy reform to create a more business-friendly environment.
Prime Minister’s Response and Future Commitments
Prime Minister Sushila Karki acknowledged the severe impact of recent political movements on businesses, admitting her limited knowledge of industrial issues due to her legal background.
She candidly remarked that entrepreneurship in Nepal is “as risky as gambling” due to persistent political instability. However, she assured the delegation of the government’s commitment to upholding the rule of law and standing with entrepreneurs.
The Prime Minister expressed encouragement at the private sector’s willingness to cooperate. She pledged to make the nation’s banking facilitation more business-friendly.
She promised to prioritize private-sector production, offer concessions on interest rates, and reduce customs duties. Her administration, she noted, would give high priority to domestic industries to foster self-reliance and acknowledged that the government alone cannot create all necessary jobs.
A Roadmap for Collaboration
The meeting concluded with a mutual understanding of the challenges and a commitment to working together. The presence of multiple ministers at the meeting indicates a serious government interest in the private sector’s concerns.
The discussions on business security, banking issues, and policy changes provide a potential roadmap for a coordinated effort to get the economy back on track. NADA’s proactive approach in presenting a detailed proposal sets a positive precedent.
It shows how industry associations can collaborate with the government to drive economic recovery and stability.
For more: NADA 22-Point Proposal
