No need to look for alternatives to electric vehicles: NADA Chairman

NADA Chairman Surendra Kumar Upreti says that we pay infrastructure tax so that good road infrastructure can be built, but the tax collected under the heading of infrastructure is not spent in this area, so the road infrastructure cannot be built well.

Ashad 29, 2083

Bimal Khatiwoda

No need to look for alternatives to electric vehicles: NADA Chairman

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The organization was established in 2032 BS – NADA Automobiles Association of Nepal. NADA, the umbrella organization of entrepreneurs associated with the auto sector, has been organizing the NADA Auto Show at the beginning of Dashain. What is the organization doing for the auto sector, which has an investment of more than one trillion rupees and more than one lakh direct jobs, how dynamic is the auto market, what are the expectations of entrepreneurs from the government, and various related issues. An edited excerpt of a conversation between NADA President Surendra Kumar Upreti and Kantipur’s Bimal Khatiwada :

How do you view the development and expansion of the auto market in Nepal?

The state has only seen it as a place to sell private vehicles without looking at the contribution made by the auto market, employment and its potential. But it should be seen as a means of bringing agricultural, construction and industrial products to the market. The government still has to understand and study the auto market properly.

There is an investment of more than 1 trillion rupees in the auto market, it employs more than 100,000 direct and more than 1 million indirect employees. If we consider any country as developed or underdeveloped, it can be seen from the classification of vehicles and public transport that are used there. But overall, this sector is good.

The number of vehicles is increasing every year, but it does not seem that attention is being paid to the development of necessary infrastructure, right?

We pay infrastructure tax so that good road infrastructure can be built. But since the tax collected under the title of infrastructure is not spent in this area, road infrastructure has not been built well. It is said that the number has increased based on the number of vehicles running in the Kathmandu Valley. Are vehicles within everyone's reach? Therefore, it is necessary to make it accessible to everyone first. Road infrastructure should be developed according to the need, but that has not happened.

Road infrastructure should be built according to the need. Underpasses, flyovers or tunnels - what infrastructure will reduce distance and save time, the government should pay attention to that.

NADA has been established for 50 years. What are the main achievements of NADA in the development and expansion of this sector during this period?

Some of the old members may have gone elsewhere due to dissatisfaction with some issues. After I became the president of NADA, I called them and tried to meet everyone. We are now in the golden age of NADA. No matter how many former presidents of NADA are there, most of them have represented the Federation of Nepalese Chambers of Commerce and Industry. In the auto sector, NADA is not always just about bringing vehicles. It must be managed properly. Along with proper management, NADA is working on service stations, insurance, and after-sales services. NADA is an organization that includes all the bodies that import vehicles, manufacture them, dealers who import vehicles into Nepal and sell and distribute them, and spare parts that provide after-sales services. It alerts the concerned bodies about what vehicles should be imported and what vehicles can cause damage if not replaced. NADA is working on environmental issues, including implementing Euro 1, Euro 2, Euro 6, and e-mobility.

What is the role of NADA in infrastructure development and road safety?

After our presidents did not see any investment in the infrastructure sector from the government, they went to the Ministry of Physical Infrastructure and Transport (currently Infrastructure Development) and suggested increasing investment. Take a certain amount from the vehicle importers as well, we are ready to give it. But they said that road infrastructure should be improved. NADA itself had suggested imposing road tolls so that we could spend it on road maintenance. We said that the roads should be free of potholes. But that has not happened. Since vehicle users are at a loss when they get into accidents, the road infrastructure tax was implemented. Now, everyone knows where the infrastructure tax was raised.

NADA keeps getting into controversy from time to time. Meanwhile, NADA has split and formed a separate organization in Nai, why can't even businessmen doing business in the same sector get along?

Some of the old members may have moved on due to dissatisfaction with some issues. After I became the president of NADA, I called them. I am trying to meet everyone. In the upcoming NADA Expo, we are working to bring everyone in by leaving one or two brands behind. Just because someone leaves home for a small matter while living in a household does not mean that they do not love their home, we should create an environment where they come back home. If we have made any mistakes, we are ready to accept it and move forward. Only if the organization is strong will the business we do be strong. So we can be one in the near future.

No need to look for alternatives to electric vehicles: NADA Chairman

What policy has the budget and monetary policy arrangements for the development and expansion of this sector taken for the next year?  

The budget for the next fiscal year has been good. If the budget is spent in full, the gross domestic product will also increase. This will increase the sales and distribution of vehicles. The trend of not spending the budget like before should not be repeated this time. It is important to see automobiles as necessary vehicles, not as luxury items. Finance Minister Swarnim Wagle has already made it clear that this is an essential vehicle. This is a good thing. The government's policy is also clear in monetary policy.

Has the government done any business-friendly work? How enthusiastic are the businessmen?

It has been 100 days since the government was formed. Now is not the time to evaluate the government. Let's not get involved in disappointing the government. We suffered a lot during the old government. If this government does not fulfill our expectations, what kind of leadership and what kind of government should we envision in the future? There is a great opportunity for this government to work. On the contrary, if it does not work, we should continue to be vigilant.

How active has the auto market become, how enthusiastic are the businessmen?

The auto market is active right now. If the road infrastructure is improved, this sector can become more active.

No need to look for alternatives to electric vehicles: NADA Chairman

Even now, most of the spare parts are in the informal sector, why has this not been controlled? How has this affected honest businessmen?

Businessmen have traded spare parts transparently. Illegally imported goods have spoiled the market. This is discrediting transparent business partners. The illegal import of goods has not stopped. Due to which the government is losing customs revenue. It is necessary for the customs administration and the armed police to stop this. If it is not stopped in time, honest businessmen may flee.

What is the market demand for electric vehicles?

Its market is good. Demand is also increasing. Electric vehicles are increasing internationally. It is no longer possible to find an alternative to it.

NADA Auto Expo is coming, how are the preparations going?

NADA Auto Show is being held at Bhrikuti Mandap in Kathmandu from 9 to 15 Bhadra. We are making it grand to signal the arrival of Dashain. Auto shows are becoming like festivals for all bodies.

What are you doing differently at NADA Auto Show this year?

We always try to offer something new at every annual auto show. NADA not only sells vehicles, but also spare parts from imported ones to tires, batteries, etc. made in Nepal are on display. More than 60 percent of the vehicles sold throughout the year are booked at the NADA show.

What do you expect from the government to make the auto show organized and good? 

There is no large exhibition venue for auto shows in Nepal. Due to which, auto shows cannot be held openly. Due to this, we have not been able to show what the NADA Auto Show is in a comprehensive manner. Many vehicle models cannot be shown openly due to lack of space. We want to organize a program about the future of the auto sector, but we are forced to be afraid that it will get wet. Therefore, there is a great need for a good exhibition venue. The auto sector contributes 22 to 24 percent of the revenue. Looking at this, we expect the government to take appropriate initiatives.

कर्पोरेट कुराकानी

Bimal

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