KATHMANDU: The government is preparing to implement new vehicle emission standards after a 12-year gap.
The existing Vehicle Emission Standards, 2012 allow the import of only those vehicles that meet Euro 3 or equivalent standards. Although the government had tried to revise emission standards in 2017 and again in 2021, the process was stalled due to pressure from automobile importers. The government, however, appears determined to proceed with the new standards this time.
Dhirendra Kumar Pradhan, Joint Secretary and Chief of the Environment and Biodiversity Department under the Ministry of Forests and Environment, said the new emission standards are in the final stages of preparation. The draft has been sent to the Environment Department for feedback, he added.
“We are working to implement the new vehicle emission standards. The draft is currently with the Environment Department for feedback. The ministry’s technical committee will finalize it once we receive feedback from the Environment Department,” Pradhan told Mero Auto. “We aim to approve and implement it within the next two to three months.”
Pradhan added that the Ministry of Physical Infrastructure and Transport and the Ministry of Finance have already given their consent to the new standards.
“Euro 6 standards have been in place in European countries for more than a decade. Our neighbor India has adopted BS 6, while China has China 6 standards,” Pradhan said. “However, Nepal is still stuck at Euro 3 standards. It is high time we introduced new emission standards.”
Since Nepal lacks its own emission standards, it has historically followed Euro standards. The government is now preparing to adopt Euro 6 standards. Since most vehicles in Nepal are imported from India and China, where Euro 6 or equivalent vehicles are produced, Pradhan believes that there will be no issues in importing compliant vehicles.
“India has enforced BS 6 since 2020, and China also manufactures Euro 6-equivalent vehicles,” he said. “Why is there a need to import vehicles with lower emission standards?”
The ministry has proposed to follow two standards—Euro 4 for heavy equipment and construction vehicles, and Euro 6 for commercial vehicles, passenger vehicles and motorcycles.
Since Nepal has been importing BS 6-compliant petroleum products since March 2021, Pradhan argued that vehicles should also meet the same standard.
Pradhan added that air quality standards for pollution control have already been approved, covering not only vehicles but also brick kilns, industrial chimneys, cement factories and other sectors. “These standards will come into effect after they are published in the Nepal Gazette,” he added.
Businesses Seek Prior Notice
Automobile dealers had requested a two-year transition period when the government started preparing to enforce the new standards in 2021. They now say that the industry is ready for the new emission standards.
Kapil Shiwakoti, chairperson of the Environment Committee of the NADA Automobiles Association of Nepal, said NADA has recommended giving a six-month window for preparation.
“New standards are necessary for pollution control, and businesses are ready for their implementation,” Shiwakoti told Mero Auto. “But it shouldn’t be implemented overnight like a budget. The government must provide at least a six-month notice.”
He warned that abrupt implementation could harm businesses, as dealers place advance orders with manufacturers. “Sudden enforcement would lead to losses on those orders,” he said, adding that prior notice would also allow them time to train technicians for Euro 6 vehicle maintenance.
“Euro 6 Not Necessary”
Some automobile dealers, however, argue that adoption of Euro 6 or BS 6 standards would increase vehicle prices. They say the priority should be on controlling old vehicles, dust and industrial pollution.
Dhruba Thapa, former NADA President and Chairperson of Ayam Intercontinental (the official distributor of Force Motors), argued that Nepal’s growing electric vehicle (EV) imports reduce the need for new standards. “Except India, other SAARC countries follow Euro 2/3 standards. Countries like Thailand and South Korea also use similar standards,” he told Mero Auto. “With 65-70% of Nepal’s vehicle imports being EVs, is Euro 6 even necessary? Why is there a rush?”
Thapa added that while passenger vehicles may not face significant issues, commercial vehicles would be heavily impacted by Euro 6 adoption. “Commercial vehicle prices could rise by 30-50%. This will increase transport costs and passenger fares,” Thapa said. “Additionally, there is a shortage of technicians for software-based repairs. This could displace many people from the sector.”
Meghraj Poudel, director of Alpha Automotive, the authorized distributor of Royal Enfield for Nepal, added that Euro 6 vehicles could cost 15-20% more. “This will put an additional financial burden on consumers and increase foreign exchange outflows,” he added.
Why Businesses Adoption Delayed
Experts say businesses are lobbying to delay Euro 6 implementation to maximize profits. Since Euro 6 vehicles are costlier to import compared to Euro 4, it will reduce profit margins for dealers.
Indian manufacturers produce BS 4 vehicles specifically for Nepal. Nepali dealers can sell these models easily until new standards come into force. The longer the delay, the more profit they can make by selling lower-standard vehicles.
Experts, however, warn that Nepal could become a dumping ground for polluting vehicles if the new emission standard is not implemented immediately.
