NADA To Stage A Demonstration Against Unfavourable Government Policies

NADA Automobiles Association of Nepal (NADA), the apex body of automobile dealers in Nepal, has announced a demonstration program against the unfavourable policies brought by Nepal Rastra Bank (NRB) in matters related to automobile businesses.Although the government has announced to lift the ban on the import of vehicles imported for private purposes and motorcycles above 150cc after December 15, 2022, the policies implemented by the central bank such as a 50 percent limit on hire purchase loans, increase in risk weight, increase in securities margin, etc, still remain a roadblock for the Nepalese automobile sector.The ban on the import of ten types of consumer goods including motorcycles above 250cc and petrol/diesel cars was enforced from April 27, 2022. Similarly, the government added two-wheelers above 150cc to the import ban list from July 17, 2022.The ban on the import of private vehicles and motorcycles above 150cc was extended time and again citing the depleting foreign exchange reserves and other contributing factors.Requesting solidarity for tomorrow's protest movement, Dhruba Thapa, President - NADA, said, " It was the need of the hour for the government to decide to open the import ban imposed for the past 8 months. While our movement has already been announced, the government has addressed one of our demands by opening imports. We welcome the government's decision. However, the policies still remain a roadblock. Our demands like providing concessions on the interest on the loan of the automobile business, adjustment of risk burden in auto loans, removal of cash margin system while issuing the Letter of Credit, adjustment in the working capital guidelines, and control of high premium rate imposed by banks, have not yet been addressed. Therefore, our movement will continue to create pressure for that."NADA will stage a demonstration program at Maitighar Mandala from 11.30 am onwards tomorrow.