KATHMANDU: Vice President Ram Sahay Prasad Yadav has described the automobile sector as a backbone of Nepal’s economy, stressing the need to promote domestic production, electric mobility and employment.
Inaugurating the 18th edition of the NADA Auto Show 2026 in Kathmandu on Tuesday, Vice President Yadav said the automobile sector could play an important role in Nepal’s economic transformation.
He expressed confidence that the auto show would help develop a roadmap for Nepal’s economic dynamism, modernisation and transformation. Yadav stressed the need for Nepal to reduce its dependence on imported petroleum products by promoting electric vehicles, noting the country’s abundant water resources and growing hydropower production.
“Given Nepal’s water resources and increasing hydropower generation, electric vehicles are the best option to reduce the billions of rupees spent on importing petroleum products,” he said.
Praising the role of the NADA Auto Show in promoting entrepreneurship, Yadav said Nepal should focus on developing its own automobile industry. He also urged NADA to work towards taking Nepal’s automobile sector to the international market.
He called for cooperation between the government and private sector to expand infrastructure such as charging stations and create an environment conducive to the development of an environmentally friendly and technology-driven transport sector.
Yadav expressed confidence that the auto show would help stimulate the domestic automobile market while contributing to local production and employment generation.
Similarly, Federation of Nepalese Chambers of Commerce and Industry (FNCCI) President Anjan Shrestha said the government should introduce programmes aimed at boosting the confidence of entrepreneurs at a time when the country’s economy is facing challenges.
Shrestha said the automobile sector contributed Rs 81 billion to government revenue last year and accounted for around 8 to 9 percent of total government revenue. He argued that the sector should not be viewed merely as a luxury industry.
He stressed the need to promote domestic assembly and manufacturing of vehicles and automobile components rather than relying entirely on imports, saying this would help create employment opportunities for young people.
NADA Chairman Surendra Kumar Upreti highlighted the lack of adequate infrastructure for large-scale exhibitions in Nepal.
“Despite the country’s growing population and economic activity, exhibition infrastructure has not developed accordingly. The existing Bhrikutimandap venue does not have sufficient space to display trucks, buses and large equipment. There is an urgent need to build an international-standard exhibition centre in Kathmandu,” Upreti said.
Upreti urged the government to consider the broader macroeconomic contribution of the automobile sector rather than viewing it solely as a vehicle trading business.
He also called for clear policies and government facilitation for charging infrastructure and the development of an automobile assembly industry in Nepal in view of the growing adoption of electric vehicles.
The auto show, organised under the main theme “From Industry to Employment” to mark the 50th anniversary of NADA, will continue until August 30, according to the organisers.
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