Kathmandu-The Nepal automobile industry relief package has received overwhelming support from NADA (Nepal Automobile Dealers Association), marking a significant milestone in the country’s economic recovery strategy. Following the unprecedented challenges posed by the recent Gen-Z movement, the government’s decisive action demonstrates its commitment to revitalizing Nepal’s crucial automotive sector.

NADA Leadership Advocacy Leads to Comprehensive Relief Package

Under the leadership of President Karan Kumar Chaudhary, NADA’s delegation successfully advocated for the Nepal automobile industry relief package during crucial meetings with Prime Minister Sushila Karki and Finance Minister Rameshwar Khanal. This proactive approach by the automobile industry association has resulted in a comprehensive support framework addressing the sector’s immediate and long-term needs.

The Nepal automobile industry relief package represents the government’s recognition of the automotive sector’s vital contribution to Nepal’s economy, including direct and indirect employment generation, substantial tax revenue contribution, and its role as the backbone of modern lifestyle and dynamic economic growth.

Key Provisions of the Nepal Automobile Industry Relief Package

1. Insurance and Compensation Benefits

• 50% advance payment based on initial insurance surveyor reports for damaged buildings, vehicles, goods, and equipment
• Insurance companies to provide up to 50% advance payments when reinsurance processes face delays
• Comprehensive coverage for businesses affected by the movement

2. Financial Support and Banking Facilities

• Minimum 80% bank loans available for purchasing new commercial vehicles or transport equipment damaged during protests
• 50% discount on customs duties and excise taxes for importing goods to restore damaged inventory
• Extended loan repayment periods for affected borrowers in the automobile industry
• Subsidized loan facilities at concessional rates for impacted businesses

3. Employment Protection Measures

• Employment Insurance Scheme with 2% subsidy and concessional loans to protect jobs
• Support for maintaining workforce stability in the automobile sector
• Focus on preserving employment opportunities during recovery phase

4. Tax Benefits and Operational Support

• Tax deductions for contributions to the National Reconstruction Fund
• Cost deduction and tax relief for uninsured inventory based on valuation
• Government offices, banks, and revenue collection agencies to remain open during holidays (except Dashain) for trade facilitation

Expected Impact of Nepal Automobile Industry Relief Package

The Nepal automobile industry relief package is anticipated to provide immediate relief to affected automotive businesses and dealers. The combination of advance claim settlements, loan facilities, customs discounts, and tax benefits will significantly contribute to overcoming current challenges.

NADA has further urged the government to expand loan facilities beyond protest-affected businesses to all vehicle categories. This expansion would:

• Revitalize market demand across the automobile sector
• Increase investment flow through the banking system
• Secure employment opportunities industry-wide
• Ensure continuity in government revenue streams

Long-term Vision for Nepal Automobile Industry

Beyond the immediate Nepal automobile industry relief package, NADA advocates for:

• Comprehensive EV roadmap development
• Customs system reforms and improvements
• Infrastructure expansion initiatives
• Policy frameworks supporting green development
• Energy security strengthening measures
• International commitment compliance

For more information about Nepal’s automotive policies, visit the Department of Transport Management and Ministry of Industry, Commerce and Supplies.

Strengthening Government-Industry Partnership

The Nepal automobile industry relief package represents more than financial support—it demonstrates the government’s commitment to listening to private sector concerns and implementing swift solutions. This collaborative approach between NADA and the government establishes a foundation for:

• Enhanced trust between industry and government stakeholders
• Rapid sector stabilization and recovery
• Demand revival across automobile markets
• Employment security and economic growth
• Nepal’s journey toward economic prosperity

Conclusion: A New Chapter for Nepal Automobile Industry

The Nepal automobile industry relief package welcomed by NADA marks a turning point in Nepal’s automotive sector recovery. This comprehensive support framework, addressing immediate challenges while laying groundwork for long-term growth, positions the industry for sustainable development.

NADA’s commitment to collaborating with the government in implementing these provisions, combined with expectations for additional policy reforms, creates an optimistic outlook for the Nepal automobile industry relief package’s success.

The association remains confident that these measures will restore sector stability, revitalize demand, secure employment, and contribute significantly to Nepal’s economic prosperity journey.

For industry updates and analysis, refer to the Federation of Nepalese Chambers of Commerce and Industry resources and connect with local automobile dealers for specific support information.

About NADA: The Nepal Automobile Dealers Association represents the interests of automobile dealers across Nepal, advocating for industry growth, policy reforms, and sustainable business practices in the automotive sector.