'Nepal Mobility Expo 2025 will be a Premier Automotive Event'

Ritu Singh Vaidya, President of Nepal Automobile Importers and Manufacturers Association (NAIMA), is one of the most prominent and influential figures in the country’s automobile industry. Vaidya, who is also Managing Director of United Traders Syndicate Pvt Ltd (UTS)—the authorized distributor of Toyota in Nepal, has also made history as the founding president of NAIMA, becoming the first woman to lead an organization of its kind in the country’s automotive sector. In an interview with New Business Age, Vaidya talked about the current state and future of the Nepali automobile industry, the role and relevance of NAIMA and Toyota’s position in the market, among other issues. Excerpts:

Q: Why was there a need to form NAIMA when the existing organization was already representing the automobile sector? There were also accusations of forming another “big boys’ club” in the automobile sector. What do you say?

A: The formation of the NAIMA was driven by the need to address long-standing, overlooked issues specific to importers and manufacturers. There was a clear need to distinguish between dealers and the entities responsible for importing and manufacturing vehicles. Matters related to policy, infrastructure and traffic require targeted discussions, and a unified voice representing this segment of the industry was essential.

Importers play a foundational role in Nepal’s automobile industry. They bring vehicles into the country, around which a larger ecosystem of services and dealerships are built. NAIMA was established to create a dedicated platform to advocate for the distinct needs of importers and manufacturers. It was never about forming a “big boys’ club”, but rather about representing the backbone of the industry with clarity, purpose and strength.

Currently, NAIMA has seven active committees, each focusing on specific areas. As we prepare for the upcoming Nepal Mobility Expo, it is essential that these committees remain dedicated and results-driven. Their work spans across policy advocacy, traffic management, workforce development and training, data collection and research, media engagement, and customer relationship strengthening.

Q: How will the Nepal Mobility Expo be different and more special than previous auto shows?

A: The NAIMA Nepal Mobility Expo 2025 will be a premier automotive event. Although the venue remains the same, the Bhrikuti Mandap Exhibition Hall, the experience will be more customer-friendly and engaging than ever before. We are increasing the number of stalls, introducing company lounges and adding interactive segments that focus on mobility and traffic awareness. Improved parking management and a stronger focus on visitor experience will make this flagship event even more organized and impactful than any auto show held before.

Q: How is the automobile industry performing now compared to recent years, especially following the import restrictions and foreign exchange issues?

A: During the recent economic downturn, vehicle imports were restricted due to a decline in foreign exchange reserves. Letter of Credit (LC) approvals were halted, severely impacting the automobile sector. However, the situation

has improved. LCs are now open, and the loan-to-value ratio for internal combustion engine (ICE) vehicles has been revised from 80:20 to 60:40. At the same time, financing for electric vehicles (EVs), which had previously benefited from favorable 80:20 terms, is seeing some slowdown. The latest budget did not introduce significant changes to auto-related taxes, especially for EVs, which is positive for the industry as it allows businesses to plan without disruption. Overall, compared to last year, the industry is on a recovery party and showing encouraging signs of improvement.

Q: There is a growing debate around EV versus ICE vehicles in Nepal, especially with the surge in Chinese EV imports. Concerns have also been raised about the quality of these EVs. What is your perspective?

A: The shift toward EVs in Nepal was largely driven by policy, particularly the tax incentives that made EVs significantly more affordable than ICE vehicles. While this policy shift was well-intentioned, both environmentally and economically, it created a market imbalance. Many consumers began choosing EVs primarily due to price advantages, rather than long-term reliability or performance.

This opened the door to a surge in Chinese EV imports. Some from reputable, established brands, but many others come from lesser-known or experimental companies. As a result, concerns have emerged about quality, reliability, after-sales service, and the availability of spare parts.

It is important not to generalize; not all Chinese EVs are subpar. It would be wrong to label the situation as dumping. However, the market has seen a mix, and we now need a balanced approach. Consumers must be informed, and importers must act responsibly. The goal is not to reject EVs or favor ICE vehicles, but to ensure the products entering the country meet proper standards. Responsible importers should focus not just on selling, but on providing long-term service, spare parts and customer care. Only then can the transition to EVs be sustainable and truly beneficial for Nepal’s auto industry and consumers alike.

Q: With the growing EV trend in Nepal, why does it seem like Toyota is holding back? Is there no temptation to shift more aggressively towards EVs?

A: It is not about lacking the temptation, it is about taking a more responsible and calculated approach. Toyota, for instance, does have EV options, but the brand has globally focused more on hybrid technology as a transition model. In Nepal, traditional importers like us have consistently brought in major global brands and maintained long-term customer trust. Loyalty to brand, reliability and after-sales service matter deeply in this market.

However, recent policy shifts have created a strong price gap between EVs and ICE vehicles. The government has provided heavy incentives for EVs—while good-intentioned, this has tilted the market unfairly. When policies themselves are so imbalanced, naturally, the outcome in sales numbers will reflect that. Many brands with deeper experience or better long-term strategies have taken a hit.

Moreover, the ground reality in Nepal is different. Road conditions, inconsistent electricity supply and lack of robust charging infrastructure are all key factors that cannot be ignored. It is frustrating at times because, while we have been importing hybrid vehicles and trying to bring cleaner, transitional technologies, those efforts have not received equal recognition or support from policymakers.

Q: With the Nepali private sector moving toward setting up automobile assembly plants, do you think Nepal lacks a long-term automobile policy? What should the government's priority be?

A: Absolutely, Nepal lacks a clear and consistent long-term automobile policy. Government vision and policy continuity are essential. Without a long-term roadmap, it becomes difficult for investors, manufacturers and even consumers to make informed decisions.

The government should focus on formulating a comprehensive national mobility or automobile strategy. The establishment of assembly plants is a positive and necessary step for Nepal. But for this to succeed, we need parallel efforts in the education sector—specifically, vocational training, technical courses and skill development programs to build a competent workforce.

Q: Where do you see the automobile sector in the next decade?

A: The direction of Nepal's automobile sector over the next decade largely depends on whether the government establishes a clear and stable vision from the start. Right now, the lack of a proper roadmap is the root of many problems. For instance, this year, there was a massive rush to import vehicles due to fear that EV taxes might increase. This uncertainty only exists because policies are not stable or predictable.

I would only request that the government make policies based on stakeholder consultation and proper evaluation. Don't make a lobbyist budget. Let’s build an independent, forward-thinking approach. We can adopt best practices from other countries and even bring in international experts if needed. But first, there must be clarity and consistency in mindset and policy.

At present, businesses are more afraid of what policy might come next than they are focused on doing business itself. Frequent and unpredictable changes in duties and policies have created a situation where even established companies feel devalued or uncertain. This inconsistency is holding the sector back.

(This interview was originally publihsed in August 2025 issue of New Business Age Magazine.)