Automobile Sector Raises Concerns Over MRP Sticker Mandate in Meeting with Minister
The automobile industry has raised concerns over the practical implementation of the government’s proposed requirement to affix Maximum Retail Price (MRP) stickers on products, during a meeting between industry representatives and the Minister for Industry, Commerce and Supplies.
A delegation from the NADA Automobiles Association of Nepal, led by President Surendra Kumar Uprety, met with Minister Gauri Kumari Yadav yesterday to discuss the policy and its implications for the automotive sector.
During the meeting, NADA acknowledged the broader intent of the MRP labeling system, stating that such a mechanism could contribute to a more transparent, organized, and accountable business environment. The association noted that clearer pricing disclosure could also support government revenue collection and encourage compliance among formally operating businesses.
However, the delegation highlighted several operational challenges that could hinder effective implementation—particularly within the automobile sector.
One of the primary concerns raised was the difficulty of applying MRP stickers to automobile spare parts, which are typically imported in large volumes within consolidated packaging.
Industry representatives pointed out that unpacking and labeling individual components at customs points would be logistically complex and time-consuming.
They further noted that the absence of adequate bonded warehouse facilities at customs yards makes on-site labeling impractical. As per the current provision, importers are expected to affix MRP stickers within customs premises, a requirement the industry argues is not feasible under existing infrastructure conditions.
NADA also used the meeting to highlight the evolving nature of Nepal’s automotive ecosystem. The association stated that several two-wheelers and four-wheelers are now being assembled domestically under the CKD (Completely Knocked Down) model.
In addition, components such as tyres, lubricants, and batteries are already being produced within the country, adding further complexity to a one-size-fits-all labeling mandate.
In response, Minister Yadav acknowledged the concerns raised by the delegation and described them as valid and worthy of consideration. She indicated that the government is open to reviewing the practical aspects of the policy and may consider deferring its implementation temporarily while working toward a more workable framework.
The minister also assured that immediate challenges faced by businesses would be addressed, and that further decisions regarding the rollout of the MRP sticker requirement would be taken after additional evaluation.
During the discussion, NADA Vice President Abhik Jyoti noted that the concept of MRP labeling had initially been proposed by the association itself, emphasizing that the industry remains supportive of regulatory transparency, provided implementation mechanisms are realistic. General Secretary Meghraj Paudel also elaborated on the technical and logistical difficulties currently faced by businesses.
The discussions follow a directive issued by the Department of Commerce, Supplies and Consumer Protection on Chaitra 30, 2082, which mandates that all imported goods sold in Nepal must display MRP, while also requiring proper invoicing during transactions. Domestic manufacturers are similarly required to include permanent labels indicating price, batch number, weight, and expiry details on product packaging.
As the government and industry continue discussions, the focus now shifts toward finding a balance between regulatory transparency and practical implementation within Nepal’s evolving automotive sector.
