Used Car Market Nepal (1)
17th September 2025, Kathmandu
In a significant development set to redefine the used car business in Nepal, Racing Automobiles has introduced an innovative program that directly addresses the long-standing issues of trust and transparency.
Nepal’s Used Car Market
The company, based in Kalanki Khasi Bazaar, has officially launched its ‘No Accident Certificate,’ a bold new initiative that provides a powerful guarantee to customers purchasing reconditioned vehicles.
The formal announcement was made during a ceremony in Kathmandu on Wednesday, marking a potential turning point for an industry often fraught with fraud and uncertainty.
The first ‘No Accident Certificate’ was ceremonially handed over to former DIG of the National Investigation Department, Laxman Gurung, by Racing Automobiles’ Chairman and Managing Director, Rudra Dhungel.
During the event, Dhungel articulated the core philosophy behind the new scheme, highlighting its primary objective: to eliminate the doubts and mistrust that have traditionally plagued the used car market.
“When we provide a certificate stating that the vehicle we sold has never been in an accident to date,” Dhungel explained, “we also guarantee that if it is later proven that the vehicle had an accident before the sale, we will repurchase the vehicle at the original selling price and refund the money.”
This unprecedented promise of a full refund is designed to provide ultimate peace of mind to buyers. It directly tackles the most common and expensive fear for anyone considering a pre-owned vehicle: the risk of an undisclosed accident history.
The reconditioned vehicle trade in Nepal has long been hampered by a lack of credible information and a reliance on seller assurances.
By backing their certification with a financial guarantee, Racing Automobiles is placing a high-stakes bet on the quality and integrity of their inventory.
Automobile trade advisor, Sitaram Bhattarai, lauded the initiative, stating that it represents a crucial step toward ensuring greater transparency and accountability within the industry.
He commented that Racing Automobiles has consistently shown a commitment to responsible and fair business practices, and this new scheme demonstrates a willingness to shoulder even greater responsibility.
This move is expected to pressure other players in the used car market to adopt similar transparent practices, ultimately benefiting the entire ecosystem of car buyers and sellers in Nepal.
For the customer, the implications are substantial. Receiving the first certificate, former DIG Gurung expressed his satisfaction, noting that the certificate provided a level of confidence and peace of mind that is rarely found when buying a used car.
The assurance that the vehicle’s accident history has been thoroughly vetted and certified is a powerful selling point that could attract a new wave of customers to the pre-owned market.
The technical backbone of this initiative was also a key point of discussion. Racing Automobiles’ Mechanical Engineer, Ghanshyam Rajak, shed light on the rigorous process the company undertakes. “We carefully evaluate the condition of every vehicle before purchase,” Rajak stated. “We only issue this certificate because we have confidence in the vehicles’ condition.” This statement suggests a meticulous inspection process, likely leveraging advanced diagnostics and a detailed physical examination to ensure the cars meet the stringent criteria for the certificate.
In a show of support, representatives from various financial institutions, including banks and insurance companies, attended the event. Shambhu Basnyat, Branch Manager of Saliko Insurance, Naya Bazaar, clarified the division of responsibility.
He noted that while Racing Automobiles guarantees the vehicle’s integrity up to the date of sale, insurance companies would take over the responsibility for any accidents that occur thereafter, creating a seamless and comprehensive safety net for the customer.
Adding to the brand-building efforts, Racing Automobiles also unveiled a new ‘Promotional Jingle’ during the event. This jingle, intended to be a catchy and memorable tune, aims to further reinforce the company’s brand identity and its core values of reliability and trust in the highly competitive automotive landscape.
Despite the fact that the government had declared a national day of mourning and a public holiday, Racing Automobiles opted to proceed with the pre-scheduled program.
Rudra Dhungel acknowledged the challenge of organizing the event under such circumstances but explained that the timing was intentional, coinciding with Vishwakarma Puja, the traditional worship of tools and machinery.
He concluded the ceremony by expressing gratitude for the attendance of all the guests, underscoring the importance of the occasion for the company and the broader automotive community.
For more:Nepal’s Used Car Market