Kathmandu. Karan Chaudhary, president of NADA Automobiles Association of Nepal, has said that the loan policy needs to be changed to increase the sale of vehicles.

Speaking at a program organized by the Association of Economic Journalists of Nepal (NEA) here today, Chairman Chaudhary urged the government to immediately revise the loan policy to increase vehicle business during the festivals like Dashain, Tihar and other festivals.

He demanded immediate change in the provision of ‘loan-to-value ratio’ to address the challenges of revenue collection.

Nepal Rastra Bank (NRB) can provide up to 60 percent loan for the purchase of vehicles. Earlier, there was a provision to get 80 percent loan on electric vehicles and 50 percent loan on petrol and diesel fuels. Auto entrepreneurs have been demanding 80 percent.

“The government formed on the foundation of the movement is preparing to hold elections in 6 months. I see the biggest challenge of revenue collection now,” says Chaudhary, “The auto sector has been contributing the most to the revenue.” During Dashain, 60 percent of the total auto market is sold, but due to the agitation, the revenue also decreases. ’

Chaudhary added, “Customers who are thinking of buying a vehicle will now save for their mandatory expenses. Nepal Rastra Bank (NRB) should immediately change the policy of ‘Loan-to-Value Ratio’ to create an environment for the purchase of vehicles. ’

Stating that the number of electric vehicles (EVs) has increased in Nepal, Chaudhary demanded the Nepal Electricity Authority (NEA) to provide transformers to install charging stations.

Thapathali, which is an auto hub, has been completely damaged due to the agitation and vehicles coming from the northern border points at Kerung and Tatopani have not been able to bring vehicles. “Some vehicles have come from Korala border point but they stop as soon as it rains. The government should be serious about improving the condition of the road,” he said.

According to Chaudhary, the auto industry is investing in two-wheelers and four-wheelers in Nepal. Batteries, tires, and some spare parts are also being produced in Nepal. The assembly industry has provided some jobs. He urged the government to formulate a policy to connect the industries including battery tyres produced in Nepal with assemblies.