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A meeting was held recently between a delegation led by NADA Automobiles Association of Nepal (NADA) President Karan Chaudhary and Nepal Rastra Bank Governor Mahaprasad Adhikari, focusing on issues within the automobile sector.
Chairman Chaudhary emphasized the need for enhancing monetary policies to revive the sluggish automobile sector. Specifically, he proposed increasing the loan-to-value ratio from 50 percent to 75 percent and adjusting the calculation of borrowers' repayment capacity to account for household income, considering that it's often shared among family members, as exemplified by jointly owned vehicles.
Additionally, he suggested simplifying the loan repayment income ratio for real estate purchases, advocating for an increase from the current 50 percent to 70 percent, based on verifiable payment records. He also advocated for stricter measures against blacklisted individuals or entities and proposed banning private and commercial vehicles running on petrol and diesel.
During the discussion, NADA General Secretary Surendra Kumar Upreti highlighted the impact of Indian cargo trucks returning from Nepal, which often transport goods from Nepal, affecting the transport business and sales of transport vehicles in Nepal. Upreti also presented six written suggestions from NADA regarding the monetary policy for the financial year 2081/82.
In response to NADA's suggestions, Governor Adhikari acknowledged the significant revenue contribution of the automobile sector to the nation and affirmed Nepal Rastra Bank's commitment to sustaining and developing the automobile business, along with the financial and ecosystem infrastructure, to boost economic activity. Adhikari also expressed the bank's endeavour to align with the needs of the automobile market.
