Anjan Shrestha

President, Nada

Despite facing one disaster after another since the deadly earthquake, Nepal’s automobile business has been on a growing trend. The massive earthquake didn’t affect our transport infrastructure heavily. The country faced political unrest in the Tarai which was followed by a blockade. We feared the blockade would affect vehicle imports but what we found was that demand for vehicles surged after the blockade ended in early February. The order backlog and new demand creation boosted the market for vehicles in the country.

High excess liquidity with banks has also helped interest rates to fall fuelling auto demand further. Banks which were not able to lend during the blockade accorded priority to auto loans and the annual growth rate was maintained at 35-40 percent compared to 20-25 percent in the past. Likewise, the sector’s contribution to government revenue reached Rs60 billion in 2015-16 compared to Rs44 billion in 2014-15. This suggests that the automobile industry has emerged as a necessity instead of a luxury. Now, 7 percent of the population owns motorcycles and 0.7 percent owns cars. Nepal is far behind in vehicle ownership rates globally, and there is scope for growth.

The development of transport infrastructure is one of the main requirements for a country’s economic transformation. It helps to increase mobility resulting in more economic activities. However, the sector has not been given as much priority as it should receive. The government’s efforts to increase the road network is positive, but safety has been a big concern. The government should use the revenue it collects in the name of road maintenance tax to improve infrastructure that can minimize possible risks on the roadways. Transport syndicates have been one of the reasons why safety has been compromised. We don’t support any type of syndicate. The government must have the will to shut down cartels in the transportation sector. NADA is ready to join hands with the government in this endeavour.

Sawant Sijapati

Member, Nada Auto Show Organizing Committee

Many exhibitors have been unable to showcase their products properly due to inadequate space at the Bhrikuti Exhibition Center. There is a need for an exhibition center of international standard. The number of participants in the auto show has been rising every year, but the space available to them is becoming smaller and smaller. If we are to exhibit well, we need three times more space than what we currently have.

Krishna Prasad Dulal

General secretary, Nada

The 11th edition of the NADA Auto Show that is going to run from August 30 to September 4 will not be involved in showcasing automobiles alone, it will help to promote the entire sector. We are considering spreading information related to road safety at the fair. Apart from the private sector’s concern, the government has to take charge in a number of tasks that include educating drivers of commercial vehicles, infrastructure development, timely road maintenance, garage management, public awareness, and most of all, ending the transport syndicate. Automobile dealers have been urging the government to check cartel in the sector for the last several years, however, our plea has remained unheard.

Shekhar Golchha

Past president, Nada

The automobile business is one of the sectors that has maintained financial transparency in the country. The sector accounts for 30 percent of the government’s revenue, and if the contribution of petroleum products is also added, the transport sector’s contribution to customs revenue comes close to 45 percent. The sector provides employment to 1.7 million people. An increasing number of vehicles also indicates rising economic activities. In the context of an expanding road network even in rural areas, there is a surge in demand for automobiles there. Excess liquidity with banks, development of the road network and wealth created by expanding economic activities even during the Indian economic blockade, among others, are the main factors behind the automotive market taking an upward trend. While there is rising demand for vehicles, the ongoing syndicate system is a big concern for safety. Due to the syndicates, we have to pay double per kilometre to deliver cargo.

Kapil Siwakoti

IME Auto, Ashok Leyland

IME Auto is involved in importing heavy equipment besides automobiles. The market for heavy equipment doubled in the last fiscal year. There is so much demand that importers are struggling to fulfill orders on time. It is fantastic that the market has grown at such a rapid pace even though the country faced a blockade lasting four and a half months. The problem the sector is facing is lack of operators of heavy construction equipment. One has to have a licence to operate four-wheelers, and the number of such people is limited. Due to the shortage of skilled operators, the use of unskilled drivers has led to an increasing number of accidents. The government has to open training centers to produce skilled mechanics. There is an absence of mechanics for repairing heavy equipment based on advanced technology like those that operate on automated systems. Lately, sensor-based vehicles have been coming and their maintenance has been a challenge because Nepali workshops don’t have adequate knowledge and skill to maintain them. This problem must be addressed.

Manoj Sethia

Former vice-president, Nada

I am engaged in the tyre businesses, and the market in the country is worth Rs2-3 billion annually. The market has been growing at the rate of 20-30 percent. Currently, 100 percent of the tyres sold in the country are imported. Gorakhakali Rubber Industry, which used to produce tyres, does not do so anymore. So, with an appropriate policy, we can establish a tyre industry here because of growing demand for tyres. Inferior tyres are one of the reasons why accidents are frequently taking place. We don’t have the technology to check the quality of tyres. Another problem we are facing is high customs duty which has contributed to the smuggling of tyres from India. Tyre prices have been decreasing internationally, but the government has kept the valuation high.

Sunil Rijal

Treasurer, Nada

The high excise duty imposed by the government on imported spare parts has meant that motorists have to bear high operating costs. Due to this reason, operators of commercial vehicles overload them and carry passengers beyond their capacity to overcome the high costs leading to road accidents. Public bus owners also have to make separate payments to various transport syndicates to operate their vehicles. Due to the increased costs, they have to compromise on the quality of spare parts. The government has to implement the concept of ‘auto village’ to enforce garage standards which has remained on paper alone. This will bring the vehicle workshop business under government laws and help discourage unqualified persons from running garages, thus minimising risks on the road.

Saurabh Jyoti

Past president, Nada

The NADA Auto Show is becoming bigger and bigger, but the international exhibition center has limited space and it has been very difficult to accommodate the exhibitors. The private sector is ready to invest collaboratively with the government to build an exhibition center. The private sector cannot do so itself because of the high cost of land. So we have to go for public-private partnership. Unlike the traditional pattern of the auto fair, there is a need to take the exhibition to another level to promote concept vehicles besides highlighting future technology. For the purpose, the government has to provide assistance by enforcing the ATA Carnet system. The ATA Carnet is an international customs document that permits duty-free and tax-free temporary export and import of goods for up to one year. Bringing a vehicles fitness center into use and allowing only authorized dealers to import vehicles could control road accident.

Bikram Singhaniya

Central committee member, Nada

The government needs to facilitate the establishment of factories to manufacture spare parts including tyres domestically. The tyre market that is worth Rs3-4 billion annually has been growing at the rate of 20-30 percent annually. There is an absence of government mechanisms to test the quality of imported spare parts. This has increased the risk to vehicles plying the roads.

Surendra Upreti

Central committee member, Nada

The lubricant market is worth Rs7 billion while Rs2 billion worth of lubricants are imported annually. There is no fixed customs duty on imported vehicle accessories of even the same category. The government has fixed the customs duty at 5-30 percent. Importers have to pay high customs duty on imported raw materials. In some cases, the customs duty is 5 percent while we have to pay 15 percent duty on base oil. The government has still categorized lubricants as hydro luxury items which is not fair. The government should give a certain tax exemption to lubricants that is used for hydropower projects and other crucial development projects.