Suggestion to maintain stability in policy and quality in infrastructure to expand auto market

Experts say that with the increase in the number of vehicles, the lack of quality infrastructure, the lack of a clear vision of the state, and the inability to effectively implement existing policies are the main challenges for this sector.

Shrawn 17, 2082

Kantipur Reporter

Suggestion to maintain stability in policy and quality in infrastructure to expand auto market

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Experts have pointed out that stable policies and quality infrastructure are essential for the development and expansion of the auto market. They say that with the increase in the number of vehicles, lack of quality infrastructure, lack of a clear vision of the state and the lack of effective implementation of existing policies are the main challenges for this sector.

Referring to the 'Naima Expo-2025' to be organized by the Nepal Automobile Importers and Manufacturers Association (Naima) at Bhrikutimandap from July 21 to 25, stakeholders said that the automobile sector will feel relief from the government's stable policy at the 'round table' organized by Kantipur Media Group on Friday.

Naima president Ritu Singh Vaidya said that the policy brought by the government should be stable. "There is a problem in making the auto business viable due to unstable policies," she said, "so the government involved the private sector in policy-making, and many things were covered." She said that the organization was established in Naima realizing the need for the import and production of vehicles because there are many umbrella organizations within a single organization.

"We have been preparing to open a new organization since 4/5 years," she said, "we opened the organization accordingly, Naima will mainly take up the issue of import and production of vehicles." She said that 50 brands of vehicles will be present at the expo that Naima is going to hold and 35 new variants of vehicles will be announced.

Even though the automobile sector is the heartbeat of the country's economy, the policy made by the government has not been addressed accordingly, said Shekhar Golchha, the former president of the Federation of Nepalese Industry and Commerce. "When mobility increases in the transport sector, it makes the economy viable," he said, "but when mobility decreases, it slows down the economy." He said that it is not just about building roads, vehicles should be accessible to common people. "Vehicles are often considered as a luxury vehicle, but it should be seen as a means of increasing the productivity of every person," he said. 

He says that the automobile sector has been left in the shadows due to not being addressed in the budget and monetary policy of the current financial year. "After Naima and Nada, the voice of the automobile sector has become stronger," he said, "but not having a policy friendly to the automobile sector in the budget and monetary policy is not our weakness." "The government has been giving a 50 percent discount on the excise duty on parts imported for the assembling industry," he said, "but we only get a 30 to 35 percent discount when we have to pay at the customs point."

Naima member Gaurav Sharda said that after the closure of the Rasuwagadhi customs post, the new vehicles to be released at the expo have been brought from the Tatopani post. Dasain-Tihar starts with the Expo, which rides  It is also the season of

sales," he said, "if the Rasuwa crossing opens in the next 15/20 days, it would be easier to bring in vehicles for Dasain-Tihar."

Yamuna Shrestha, a member of NAIMA, said that the government policy of sending back used batteries in electric vehicles has made them uncomfortable. "Such batteries can be used for other purposes," she said, "Rather than sending the vehicle back to the country where it was imported, we should try to reuse and repair it in Nepal."

She said that vehicle brands in the country are increasing day by day. "The automobile industry is old, earlier there were only 9/10 vehicle brands," she said, "Now 40/50 vehicle brands have entered Nepal." She said that due to geographical reasons, diesel, petrol, hybrid and electric vehicles are needed in Nepal. "We don't need only electric vehicles or hybrids, we need all three types of vehicles due to geography," she said. 

He says that a large amount of money has been spent on diesel and petrol imports and this is increasing the gap in foreign trade deficit, so emphasis should be placed on electric vehicles. Mahesh Bhattarai, Director General of the Customs Department, said that while 73 percent of electric vehicles came in the financial year, only 27 percent were diesel-petrol vehicles. He said that policy stability has been given without increasing the tax rate of electric vehicles in the budget of the current financial year. "Government has invested the most in road infrastructure," he said, "According to that, work is being done to expand road infrastructure."

Director General of Transport Management Department Rajeev Pokharel said that the ratio of vehicle import and road infrastructure construction is not matching. "The road infrastructure has not been built in proportion to the number of vehicles entering, so traffic jams are increasing," he said. He said that the department is trying to formulate a policy on vehicle import by discussing with the private sector.  He said that 40 public electric vehicles of common transport and 10 of other companies are running in the

valley. "Before the decade, the Chinese government is giving 100 electric vehicles through subsidies," he said.

Kantipur

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