e-Magazine
News
Local News
International News
Industry
Reviews
Offers
Prices
Videos
More
Photos
Interviews
November 5, 2024
Home
News
Local News
International News
Industry
Reviews
Offers
Prices
Videos
Photos
Interviews
E-Magazine
Social Media
Weather Update
Local News
NADA's Perspective On The Current Import Restriction Of Passenger Vehicles
NADA's Perspective On The Current Import Restriction Of Passenger Vehicles
Team Nepal Drives
May 28, 2022
May 28, 2022
NADA-Perspective-Import-Restriction-Passenger-Vehicles-Nepal-Featured-Image
NADA Automobiles Association of Nepal (NADA) has urged the government to continue the process of opening letters of credit (LC) for private cars, jeeps and vans.The Nepalese automobile industry which plays a pivotal role in the country's economy has an investment of more than one hundred billion rupees and it employs about one million people, directly and indirectly. Even though the revenue contribution from this sector is almost double, the government has turned a deaf ear to NADA's plea citing depleting forex reserves and liquidity crisis. Besides the factors of market behavior that can affect the automobile industry, the overdose of government regulations has been inappropriate on many fronts.Statistics of the Department of Customs show that the import restricted passenger vehicle segment, which is 1 percent of the country's overall import, contributes more than 6 percent to the import revenue. The import revenue which stood at Rs 36.21 billion in the last fiscal year has now decreased to Rs 34.06 billion. This has also seen a massive drop in revenue from the overall industry. The government's revenue from the overall automobile industry for the current fiscal year stands at Rs 74.83 billion against Rs 89.89 billion during the same period collected last fiscal year. In terms of impact,The automobile industry operates in a large ecosystem comprising different stakeholders. More than 25,000 small, medium and large businesses including dealers, garages and parts shops directly fall under the industry's ecosystem. Due to the current import restriction, the automobile industry, which is one of the largest employment generating sectors in the country, also puts at risk the lives of more than one million families.The current import restriction of passenger vehicles has been rather tough for the already struggling industry. To help the industry recoup lost ground, the policy intervention and regulation should take into account the practical problems of the industry. Going forward the government should look at the entire ecosystem in totality and should fix its focus on other alternatives to overcome the current liquidity crisis.
Published Date: 2022-05-28 20:15:56
#NADA
#Letter of Credit
#Import Ban
Read more news
Nepal Drives Vol 3 Issue 12 Magazine Out Now!
2024-11-05 15:13:44
Post Comments
popular Post
1
Hyundai Ioniq 5 Price Drop: Now Available at Rs 92.96 Lakh
2
Suzuki Unveils e Vitara Electric SUV with All-Wheel Drive and Dual Battery Options
3
Ram Kishun Yadav Claims Rs 5 Lakh Cashback in CG Hero's Dashain and Tihar Promotion!
4
Nepali Rider Deepak Sah Felicitated by Royal Enfield Nepal
5
TVS MotoSoul 4.0 Scheduled for December 6-7 in Goa
More News
Bajaj Introduces Exchange Program throughout Nepal
May 28, 2022
Leapmotor Sends First Shipment of C10 SUVs from China to the Asia Pacific Region, Including Nepal
May 28, 2022
MAW Vriddhi's Biggest Exchange & Test Drive Camp in Pokhara; Grab the Deepal S07 EV at a Pre-Budget Price of NPR 71,99,000!
May 28, 2022
Government and Private Sector Collaboration Needed for Electric Vehicle Infrastructure
May 28, 2022