KATHMANDU: NADA Automobiles Association of Nepal has urged the government to introduce incentive policies for the development of the auto component industry.
A NADA delegation, led by President Surendra Kumar Uprety, met Revenue Secretary Bhupal Baral at the Ministry of Finance. The meeting focused on current challenges in the automobile sector.
NADA stated that the sector is currently slow and needs policy reforms to regain momentum. It said improving the political environment would help increase government revenue and create jobs.
Uprety highlighted the importance of CKD-based industries. He said such industries generate employment and require a stable ecosystem. For this, he stressed the need to develop local component industries. He also called for tax relief on raw material imports.
NADA also raised concerns about the lack of proper testing facilities in Nepal. It said some automobile products are already produced locally, but the absence of quality testing equipment is creating difficulties for businesses.
Revenue Secretary Baral said the suggestions are practical and acknowledged the issues. He assured that efforts will be made to address them.
Former NADA President Karan Chaudhary suggested increasing the loan-to-value ratio. He said higher vehicle sales would support job creation and boost government revenue.
Special Advisor Rajan Babu Shrestha said expanding the automobile industry would increase both employment and revenue. He also noted that vehicles are still classified as luxury items, which affects sector growth.
