KATHMANDU: The NADA Automobiles Association of Nepal has expressed dissatisfaction with the Monetary Policy for 2025/26, stating that it largely ignores the concerns and suggestions of the country’s auto industry.
Issuing a press statement on Friday, NADA said the new monetary policy falls significantly short of the expectations of the automobile entrepreneurs. “The monetary policy failed to address our concerns in any manner,” it added.
According to NADA, existing policies that need reform have been left untouched. “There is no provision for easing the import process of vehicles, and existing policies have been retained for luxury, heavy-segment and high-tech vehicles,” it added. “While customs and tax exemptions for electric vehicles have been retained, there have been no notable improvements in vehicle loans, import procedures and giving industry recognition to this sector.”
NADA said although the monetary policy has aimed to promote electric mobility through green finance, it does not prioritise direct loan disbursement for electric vehicles
NADA added in the statement that although the monetary policy has aimed to promote electric mobility through green finance, it does not prioritise direct loan disbursement for electric vehicles. “It has merely been treated as part of a green initiative,” it added.
The association has welcomed the provision of revising regulatory provisions for hire-purchase companies, including Fit and Proper Tests and service fees. “However, it continues restrictive policies by tightening loan-to-value (LTV) ratios for fuel-powered and luxury vehicles and making no changes to personal auto loan guidelines,” it said.
NADA said it believes that clear policies and support are essential to promote the growth of the automobile sector, recognising its contribution to the promotion of the electric ecosystem, job creation and the country’s industrialisation. “In this context, we strongly urge the government to seriously acknowledge the economic importance of the automobile sector and take immediate steps for policy facilitation,” it added in the statement.
