KATHMANDU: The government’s sudden decision to enforce new emission standards have left many automobile importers high and dry.
The Ministry of Forest and Environment implemented the Nepal Vehicle Pollution Standards, 2025, on June 23. The new rules prevents the import of two-wheelers that do not meet Euro 5 standards and four-wheelers such as cars, vans, buses and trucks that do not meet Euro 6 standards.
The new standards, however, do not apply to construction equipment like tractors, dozers, cranes rollers, and excavators, nor to military vehicles imported with the recommendation of the Ministry of Defence. Similarly, vehicles for which payments have already been made through letters of credit or bank transfers are also not affected by these new standards. However, no provision has been made for pre-ordered vehicles.
The estimated financial liability from over 19,000 pre-ordered vehicles exceeds Rs 9 billion.
Dealers, especially those importing vehicles from India, typically place orders three months in advance. Due to the sudden enforcement of the new rules, vehicles ordered before June 23 can no longer be imported into the country. However, dealers say they will have to bear the financial obligations of the pre-ordered vehicles to the supplier.
This sudden implementation of the emission standards has hit two-wheeler and commercial vehicle importers the hardest.
Although industry people have welcomed government’s move to enforce stricter environmental regulations, they criticize the government for enforcing the new standards without prior notice. Kapil Shiwakoti, who heads the Environment Committee at the NADA Automobiles Association of Nepal(NADA), said the sudden enforcement of new emission standards has put importers in crisis. “We welcome the new pollution standards. However, it will affect import of vehicles ordered months ago,” Shiwakoti said.
He added that importers had placed orders for 18,854 vehicles before the new standard took effect. This includes 17,477 motorcycles and scooters, and 1,377 commercial vehicles. The estimated financial liability from these pre-orders exceeds Rs 9 billion.
“The government had been saying that it would implement new standards, but no date was specified,” Shiwakoti said. “Even if those orders are canceled, manufacturers add the cancellation amount to future vehicle prices. It will affect both importers and consumers.”
Although industry people have welcomed government’s move to enforce stricter environmental regulations, they criticize the government for enforcing the new standards without prior notice.
Shiwakoti urged the government to allow a one-time import of these pre-ordered vehicles.
On June 27, NADA formally wrote to the Office of the Prime Minister, Ministry of Finance, Ministry of Forests and Environment and other concerned agencies, requesting permission to import the pre-ordered vehicles.
According to NADA, 14 importers have placed the pre-order, with ordering more than 6,000 vehicles.
Govt forms committee
The Ministry of Forests and Environment has formed a study committee led by the Director General of the Department of Environment to study the demands made by NADA.
An official at the ministry said necessary decision will be taken based on the committee’s report. “Although importers have demanded a one-time exemption, we cannot take a decision on the basis of verbal orders and proforma invoices alone,” the official said. “Some vested interests are clearly seen. We will take a decision based on the committee’s report.”
The official also rejected claims that the rule was enforced without prior notice. “The government had already announced in its annual policy and program document that Euro 6 standards would be enforced,” the official added.
