Kathmandu— Vice President Ram Sahaya Prasad Yadav underscored the automobile industry as a vital component of Nepal’s economic landscape during the opening of the 18th edition of the NADA Auto Show in Kathmandu on August 25. He stated that the sector is integral to the nation's economy and expressed hope that the event would contribute to economic development, advancement, and transformation while also advocating for a shift from fossil fuels to electric vehicles. The auto show, which began with the slogan 'From Industry to Employment', will run until September 9.

Economic Contribution of Automobile Sector

The automobile sector contributed Rs 81 billion in revenue to Nepal’s state coffers last year, representing approximately eight to nine percent of the country's total revenue according to Anjan Shrestha, President of the Federation of Nepalese Chambers of Commerce and Industry (FNCCI). Shrestha argued that the sector should not be viewed simply as a luxury item, particularly given the current challenging economic situation. He stressed the need for government programs designed to bolster entrepreneur confidence.

Call for Domestic Production & Assembly

Both Vice President Yadav and FNCCI President Shrestha highlighted the importance of developing domestic automobile production capabilities. Yadav urged Nepal to begin producing automobiles independently, while Shrestha called for a shift from relying on imports towards assembling and manufacturing vehicles and spare parts locally. He emphasized the need to foster production-oriented sectors within Nepal to create employment opportunities for young people.

Infrastructure Needs & Policy Clarity

Surendra Kumar Upreti, president of NADA, pointed to a lack of adequate infrastructure for large exhibitions in Nepal, noting that the current Bhrikutimandap exhibition ground is insufficient for displaying larger vehicles. He called for the construction of an international-level exhibition center in Kathmandu. Upreti also urged the government to recognize the broader economic impact of the automobile sector and provide policy clarity and incentives for developing charging infrastructure alongside a local vehicle assembly industry, particularly as electric vehicle adoption grows.

The NADA Auto Show 2026 is expected to continue through September 9, with organizers hoping it will stimulate domestic production, create employment opportunities, and contribute to a more vibrant Nepali automobile market.

(With inputs from RN)

Originally published on abcnews.com.np.