The Nepal Automobile Importers and Manufacturers Association (NAIMA) has expressed serious concern over the newly announced Monetary Policy for FY 2082/83, stating that the policy has entirely overlooked the automobile sector, despite prior recommendations.
NAIMA President Ritu Singh Vaidya stated that although the association had submitted specific proposals ahead of the policy release, none were addressed.
“We had clearly requested a revision of the auto loan-to-value ratio to 80:20 for all vehicle categories based on international standards, vehicle types, and market demand,” said Vaidya. “However, the monetary policy has ignored these recommendations, which is extremely disappointing.”
The association criticized Governor Dr. Bishwanath Paudel’s first monetary policy as discouraging, particularly for its failure to include targeted measures to improve access to auto financing.
NAIMA also pointed out that while real estate, the stock market, and other industries were explicitly addressed in the policy, the automobile sector was entirely neglected, raising concerns of sectoral imbalance.
Among other unaddressed suggestions, NAIMA had recommended:
- Allowing Letters of Credit (LCs) in Chinese Yuan for vehicles manufactured and shipped from China, regardless of the parent company’s country of registration.
- Classifying auto loans as secured loans, and reducing the risk-weighted asset ratio from 100% to 75% to encourage auto financing.
NAIMA urged the central bank to reconsider its feedback, highlighting that the current policy fails to reflect the practical needs and challenges of the automobile industry.
Previously, the NADA Automobiles Association of Nepal (NADA) also voiced its dissatisfaction, stating that the monetary policy made no mention of the auto sector, further intensifying concerns within the industry.
