NADA Urges Loan Policy Revision to Boost Auto Sales, Revenue

Karan Chaudhary, President of the NADA Automobiles Association of Nepal, has urged the government and Nepal Rastra Bank (NRB) to revise loan policies to revive sluggish vehicle sales and strengthen revenue collection in the aftermath of the Gen Z-led protests.

Speaking at a discussion titled The Road Ahead for Economic Revival organised by the Nepalese Association of Financial Journalists (NAFIJ) in Kathmandu Tuesday, Chaudhary called for immediate revision of loan-to-value (LTV) ratios during major festivals such as Dashain and Tihar, when auto sales usually peak.

At present, NRB allows up to 60 percent financing on vehicle purchases. Previously, buyers could access up to 80 percent financing for electric and 50 percent for fossil fuel-powered vehicles. Automobile entrepreneurs have long pressed regulators to restore the ceiling to 80 percent.

“Revenue collection can be a challenge for conducting elections, which the interim government plans to hold in six months,” Chaudhary said. “The automobile sector has consistently been one of the largest contributors.”

He noted that potential buyers have tightened spending, prioritising essentials over vehicles. Revising LTV rules, he argued, would help stimulate demand.

With demand for EVs rising, Chaudhary also urged the Nepal Electricity Authority to ensure timely delivery of transformers to support expansion of charging infrastructure.

The protests dealt a direct blow to the sector: several vehicle showrooms in Thapathali and other locations were torched on September 9.

Chaudhary further pointed to poor road infrastructure and blocked trade routes as persistent bottlenecks. Imports through Nepal’s two main crossings with China, Kerung and Tatopani, remain halted, while some vehicles are now being routed through the Korala border in Mustang.

He stressed the need for policies that link auto imports with Nepal’s growing automobile assembly sector, arguing that such integration is key to the industry’s long-term growth.