The formal announcement of the Nepal Automobile Importers and Manufacturers Association (NAIMA) in the second week of April marks a vertical split from the NADA Automobile Association of Nepal which has been the sole representative body of the Nepali automobile sector for over five decades. 

A group of the country’s leading vehicle importers and manufacturers has broken away to form NAIMA. This shift represents both a significant and symbolic departure from the association that served as the umbrella body for Nepal’s diverse auto sector for a long time. NAIMA’s creation follows growing internal discord within NADA over leadership succession, opaque decision-making, and a widening imbalance of influence among members. The move is seen as a bold step toward more focused representation for key players in the mobility sector—and a direct response to the structural tensions that have plagued NADA in recent years.

Why NAIMA Was Formed

NADA had a broad spectrum of businesses—ranging from vehicle importers to spare parts dealers, lubricant suppliers, tire vendors, and auto accessory traders—under its umbrella since its formation. However, over time, major automobile importers and assemblers felt their priorities—such as policy advocacy, regulatory frameworks and trade issues—were sidelined by the louder voices of component and accessory traders. This imbalance prompted a group of automobile importers and manufacturers to create a dedicated association focused on amplifying their influence and advocating for their specific needs.

NAIMA was registered on February 25 at the Office of the Registrar of Companies under the Companies Act and officially launched on April 16 with the tagline “Path to Prosperity through Mobility.” The organization aims to promote a more cohesive and focused dialogue around mobility in Nepal. Ritu Singh Vaidya, Managing Director of United Traders Syndicate, the authorized distributor for Toyota and Ather, has taken the helm of NAIMA as its Founding president. “NAIMA is here to provide a strategic platform for Nepal’s mobility industry and policy stakeholders—both locally and globally,” she said at the launch event.

The Fallout Inside NADA

To understand NAIMA’s birth, one must first look at the internal cracks that developed within NADA over the past years. Tensions came to a head before NADA’s 47th Annual General Meeting in 2024, when a fierce leadership contest emerged between two presidential hopefuls: Karan Chaudhary and Akash Golchha. To avert a divisive election, NADA’s then-president Dhruba Thapa, alongside former office bearers, brokered a power-sharing deal. They created a new post, Senior Vice President, with the understanding that the individual appointed in the position would automatically become president in the next term. This compromise was approved by a special general meeting on December 19, 2023, and Akash Golchha was named Senior Vice President, while Karan Chaudhary assumed the presidency—ironically after a lottery draw between the two contenders.

However, the agreement derailed as the District Administration Office (DAO), Kathmandu, refused to endorse NADA’s revised statute, arguing that it violated legal limits on the size of the executive committee. NADA’s amended structure included more than the permissible 17 members, prompting the local administration to reject the revisions and request statutory corrections. This move sent ripples through the association.

What began as a tactical compromise eventually devolved into a bitter power struggle. This division not only paralyzed operations of NADA but also pushed disillusioned members to consider alternatives—leading to the creation of NAIMA.

A New Vision for Mobility

NAIMA is positioning itself as a forward-looking platform focused on key pillars: policy advocacy, innovation, infrastructure development and consumer empowerment. It aims to bridge the gap between the government and private sector on pressing issues like electric vehicle (EV) policies, import tariffs and charging infrastructure investment.

The NAIMA’s board is made up of 11 influential figures from Nepal’s top automotive companies. In addition to President Vaidya, board members include industry heavyweights like Suhrid Ghimire (Continental Trading), Shekhar Golchha (Hansraj Hulaschand & Co), Cabinet Shrestha (Agni Inc), Saurabh Jyoti (Syakar Trading), Sandeep Kumar Sharda (SPG Automobiles), Nikunj Agarwal (Paramount Motors), Hemant Golchha (Shangrila Motors) and Udayan Kabra (Omni Motors).

Interestingly, some NAIMA board members are also in the executive committee of NADA. NAIMA board members Nirakar Shrestha of Laxmi Motors is the Vice Chairperson of NADA, while Yamuna Shrestha of Cimex Inc is an Executive Member.

Set for Showdown

As of now, both associations maintain that auto importers and manufacturers are free to choose their affiliation. Some companies may even opt to maintain ties with both organizations, especially during the early years of the group’s coexistence. Still, observers say that competition between them is likely inevitable—particularly in areas such as event hosting, industry representation and policy advocacy.

Despite assurances of cooperation, the two organizations appeared headed for a showdown. One of NAIMA’s first public moves was to announce a competing vehicle exhibition: The Nepal Mobility Expo, scheduled for August 6-10 at Bhrikuti Mandap, Kathmandu. Auto expos have long been the domain of NADA, serving as a major annual highlight for the automobile industry. NAIMA’s decision to launch its own show has signaled a beginning of a new era of competition for influence and visibility in the automobile industry.

At the launch event, Gaurav Sharda, a member of the NAIMA’s Auto Show Committee, unveiled the official logo and called on all stakeholders to support the new initiative. Meanwhile, NADA has also announced its flagship auto show, scheduled to begin on August 19, at the same venue.

Roads Ahead

Nepal’s automobile sector is on a divergent path with the formation of NAIMA, split between two associations with more or less the same vision. single vision. For now, both NADA and NAIMA assert that members are free to join either or both. As government policy around EVs, import regulations and sustainability gains urgency, the true test will be which association proves more effective in representing the industry’s interests.

NAIMA has positioned itself as a more focused voice for importers and assemblers, while NADA retains its historical standing and a broader membership base. NAIMA board member Suhrid Ghimire clarified that NAIMA will not antagonize NADA. “We are not trying to create conflict,” he said. “But we do need a platform where our voices are heard. Current government policy still treats automobiles as luxury goods. That perspective is outdated and needs to change.”

But beneath this assertion lies a deeper question: can the industry thrive while divided?

(This news report was originally published in    May 2025   issue of New Business Age Magazine.)