Govt urges private sector to start automobile assembly plant

KATHMANDU, Sept 3:

The government has urged private sector to start automobile assembly plants in Nepal.

Inaugurating the 9th NADA Auto Show in Kathmandu on Wednesday, Finance Minister Ram Sharan Mahat said entrepreneurs should invest on assembly plant to take domestic automobile sector to a new height.

“There has been significant growth in Nepal’s automobiles market over the past few years. Not time has come to open automobile assembly plant in Nepal itself,” Mahat said, adding, “Opening of assembly plants in the country would stop outflow of fund and contribute to national economy.”

Saying that Nepal has been increasing vehicles worth around Rs 40 billion every year, Mahat also promised necessary logistic support to entrepreneurs interested to open automobile assembly plant in Nepal. “Assembly plant should be our short-term plan. In the long run, we should be able to manufacture vehicles here itself,” he added.

He suggested to the investors to open assembly plant for two-wheelers to begin with.

Mahat said the government was committed to boost economic growth and promised necessary support to the automobile sector.

Responding to the demands for reducing tax rages on vehicles and spare parts placed by automobile dealers, Mahat said it was a compulsion to levy high tax on automobiles. “It is from the revenue collected from automobile sector that the government has been building new roads and standardizing existing roads,” he said, adding that the finance ministry had suggested to the Department of Roads (DoR) and Ministry of Physical Infrastructure and Transport (MoPIT) to issue Public Transport Policy as soon as possible. “The new policy will be crucial for the development of domestic automobile sector.”

Shekhar Golchha, president of Nepal Automobile Dealers’ Association (NADA), said the government should help the private sector to vehicles penetration by making vehicles accessible to middle-class people. “Transportation sector is crucial for the development of all other sectors like agriculture and hydropower,” Golchha said, adding, “Nepal’s automobile sector will not grow unless the government’s perception toward the sector is changed.”

Golchha also urged the government to establish vehicle testing centers as soon as possible. “Number of accidents is increasing because of the lack of such centers,” he said, urging the government to increase monitoring for controlling imports of fake spare parts.

The five-day event, which is being organized by NADA, showcases different brands of automobiles, tires and spare parts, and accessories. Around 50 national and international companies are participating in the event.

Source: Republica