NADA Meets Finance Minister: Big Reforms Ahead for Nepal’s Auto Sector?

In a significant policy dialogue aimed at reviving Nepal’s automotive sector, the NADA Automobiles Association of Nepal held a high-level meeting with Finance Minister Dr. Swornim Wagle on April 5, 2026.

The delegation, led by NADA President Surendra Kumar Upreti, presented a comprehensive roadmap focused on increasing government revenue while accelerating modernization across the country’s mobility ecosystem.

During the discussion, Upreti emphasized that a well-calibrated policy framework could unlock a dual benefit—higher state revenue alongside large-scale employment generation. Responding positively, Minister Wagle outlined the government’s intent to explore lower tax rates to widen the tax base, a strategy aimed at improving overall revenue collection.

He further assured that the upcoming national budget would lean toward private-sector-friendly reforms, while also addressing structural inefficiencies in the market through enhanced infrastructure spending, particularly in road development.

A key concern raised by NADA was the ongoing struggle of Nepal’s domestic automotive-related manufacturing sector, including locally produced tires, tubes, batteries, lubricants, and helmets.

Upreti pointed out a critical institutional gap: the absence of adequate government mechanisms to certify product quality, which has hindered growth and trust in locally manufactured goods.

To address this, NADA proposed tax relief on imported raw materials to improve cost competitiveness and called for a more supportive production environment.

The conversation also extended to future mobility trends. NADA Distinguished Advisor Rajan Babu Shrestha stressed the need for investment-friendly policies to accelerate electric vehicle adoption in Nepal.

He also highlighted rising concerns over cross-border smuggling, attributing the issue to recent GST reductions in India, which have created price disparities and impacted legitimate domestic businesses. Strengthening border control measures was flagged as an urgent priority.

The meeting concluded with the submission of a detailed 36-point memorandum by NADA, outlining industry challenges and policy recommendations.

Minister Wagle reaffirmed the government’s commitment to continued dialogue with stakeholders ahead of the national budget announcement.