Government Engages Stakeholders to Support Automobile Sector After Recent Unrest

Finance Minister Rameshwar Khanal has met with representatives from the automobile sector to discuss the challenges caused by recent unrest, which damaged showrooms and disrupted business operations.

The discussions and showroom visits focused on assessing the impact on the industry and exploring ways to restore normalcy, with Minister Khanal emphasizing that the government is actively engaging stakeholders to evaluate damages and develop recovery measures.

Finance Minister Rameshwar Khanal inspects the damaged showrooms

Support packages for affected entrepreneurs, including financial assistance from banks and other institutions, as well as potential tax relief, are under consideration. While specific policy measures are still being finalized, the government is prioritizing coordinated recovery efforts to ensure business continuity, restore investor confidence, and support the revival of the automobile sector.

NADA President Karan Chaudhary meets Finance Minister Khanal to discuss the current challenges

The industry remains a vital pillar of Nepal’s economy, contributing 27% to customs revenue. However, the recent unrest has raised concerns over the safety of employees, customers, and physical infrastructure, shaken consumer confidence, and created new challenges for long-term investment and employment.

NAIMA team meets DoTM officials to discuss recovery and collaboration for Nepal’s mobility sector

Several major showrooms were damaged or destroyed. In Thapathali, Kathmandu, Tata Motors, Mahindra, Suzuki, and Hyundai’s Thapathali outlet were affected. The entire CG Motors building, housing GAC Aion, XPeng, and Smart electric vehicles, was destroyed, resulting in estimated losses of around Rs 50 crore.

Similarly, in Bhatbhateni area, the Hero MotoCorp showroom was vandalized, and additional showrooms outside the Kathmandu Valley were also damaged, highlighting the widespread impact on Nepal’s automobile sector.