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The NADA Automobiles Association of Nepal (NADA) has suggested various recommendations to Nepal Rastra Bank in light of the upcoming monetary policy.
The automobile sector makes a significant contribution to Nepal's GDP. It directly or indirectly employs thousands of Nepalis, playing a crucial role in national development. However, due to economic slowdowns in the automobile sector and the absence of supportive policies, the entire sector is currently facing a crisis, witnessing a 68% decline in the overall automobile market. Presently, this sector contributes only 14% to the GDP, whereas it once contributed up to 21%.
According to Karan Chaudhary, President of the NADA Automobiles Association of Nepal, "There is an urgent need for friendly policies in the automobile sector. While there are commendable incentives for electric vehicles at the policy level, the automobile sector needs policies that encompass not just electric vehicles but also integrate all aspects such as ICE vehicles, parts, lubricants, and tyres. Hence, there is a necessity for policies that benefit all these businesses."
NADA has presented timely suggestions to the Nepal Rastra Bank to transform Nepal's sluggish automobile business into a dynamic one. The recommendations made to the Nepal Rastra Bank are as follows: