Nepal Auto Industry Policy: NADA Urges Clear EV Plan for Long-Term Growth Kathmandu
9th April 2025, Kathmandu
The auto industry in Nepal is calling for clear and sustainable policies to guide its growth. NADA Automobiles Association of Nepal (NADA), representing automobile businesses, has raised concerns about the government’s current approach. As the government prepares the national budget, NADA urges the adoption of a long-term and stable policy for the sector.
Nepal Auto Industry Policy
Need for a Clear Electric Vehicle (EV) Policy
The government has expressed support for electric vehicles (EVs), but the industry feels that the policies are unclear. Auto dealers argue that a consistent and long-term policy is necessary to promote EVs. Currently, the government’s approach is seen as inconsistent, which creates uncertainty for businesses in the sector.
Shivraj Adhikari, Vice Chairman of the National Planning Commission, explained that EVs are still in an innovation phase globally. There are many uncertainties, such as how to develop battery technology and other parts. “We are all moving towards EVs, but we must carefully choose the right model and approach,” he said. Adhikari also emphasized that policies made a few years ago no longer work and need updating. He stressed the need for better infrastructure, including charging stations and service centers, to support EV growth.
Focus on Long-Term Growth Over Quick Profits
Ghanshyam Upadhyay, Secretary of the Ministry of Finance, warned the private sector against focusing on short-term profits. Instead, he called for the sector to align with the government’s vision of sustainable development. He added that the government is considering the economic impact of its policies and wants to develop solutions that support long-term growth.
Increased Interest in Vehicle Imports
In recent months, there has been a surge in people seeking to import vehicles. Santosh Koirala, President of the Nepal Bankers’ Association, noted that many individuals are coming to banks to import cars. “People are rushing to import vehicles because they see others doing well,” he said. Koirala highlighted that the government needs to clarify which types of vehicles can be imported and which brands are allowed. He also warned that individuals entering the auto sector without proper expertise might lose both their existing and new businesses.
Bank Investments in EVs
Koirala pointed out that banks are increasingly investing in the EV market. However, he raised concerns about the technical challenges and the costs involved in maintaining EVs. He stressed the importance of understanding the risks associated with battery replacements, as these could be costly in the future. He called on the government to create clear policies to address these challenges.
Importance of Long-Term Planning
Dr. Bhim Prasad Shrestha, a mechanical engineer at Kathmandu University, agreed that policies for EVs should be long-term. “We must take into account the limitations in infrastructure and financial resources,” he said. Shrestha believes that policies should be built with sustainability in mind.
A Call for Action from the Government
NADA President Karan Chaudhary concluded by emphasizing the importance of the auto sector for Nepal’s economy. He said the sector is crucial for job creation, government revenue, and industrial growth. Chaudhary urged the government to recognize the auto sector’s role in national development. “If the government does not make transportation accessible, the country’s prosperity will be at risk,” he warned.
In conclusion, the auto industry in Nepal is calling for clear and sustainable policies to ensure its long-term growth. Stakeholders in the sector are hopeful that the government will take the necessary steps to guide the industry towards a successful future.
For more: Nepal Auto Industry Policy
