KATHMANDU: The Nepal Automobile Importers and Manufacturers Association (NAIMA) has said its suggestions were not incorporated in the Monetary Policy for 2025/26.
Issuing a statement, NAIMA said it had proposed a long-term reform roadmap for the automobile industry, including a balanced vehicle loan-to-value (LTV) ratio aligned with international standards, market realities and government procedures. “We had suggested implementing an 80%-20% LTV ratio for all types of vehicles. However, the monetary policy has failed to incorporate any such provision, which is extremely disappointing,” the association said.
NAIMA criticized the policy for lacking concrete measures to improve access to auto loans, despite its stated objective of expanding credit flow. “Although clear provisions have been outlined for other sectors such as real estate, the stock market and various industries, the automobile sector appears to have been neglected,” it added.
Since the monetary policy aims to increase overall credit flow, NAIMA said it could have a favorable impact on the availability and accessibility of auto loans.
NAIMA said it had suggested that the central bank allow importers to open Letters of Credit (LCs) in Chinese currency for vehicles manufactured in China and supplied from China, regardless of the beneficiary company’s country of origin. “This suggestion was in line with today’s global trade practices based on trilateral agreements. However, the monetary policy overlooked such practical and essential needs of the automobile sector,” NAIMA added.
NAIMA also said that its suggestion to reduce the Risk-Weighted Asset (RWA) ratio for auto loans from 100% to 75% to ease vehicle financing was also ignored. “Such a provision would have helped ease loan disbursement and support market growth,” the association said.
Since the monetary policy aims to increase overall credit flow, NAIMA said it could have a favorable impact on the availability and accessibility of auto loans.
