Kathmandu. After the Automobile Association of Nepal (NADA), an organization formed to work for the development of the automobile sector, started to become more political, another organization has been formed. On Wednesday (Baishakh 3), a different organization was formed under the name Nepal Automobile Import and Manufacturers Association (NAIMA).
A different organization was formed after NADA started to become more political and weak in policy lobbying. The structure of the new organization is different. An 11-member committee has been formed under the chairmanship of Ritu Singh Wahid, director of United Traders Syndicate Pvt. Ltd., the official dealer of Toyota vehicles in Naima, a non-profit organization opened with permission from the Companies Registrar’s Office.
In this model, there are no positions such as general secretary, secretary, treasurer, or joint secretary. The organization will be operated as if a company were operating.
Why did Naima open?
During the time of former Finance Minister Janardan Sharma, the National Bank started tightening the opening of letters of credit (LC) for various goods, citing the dwindling foreign exchange reserves. Following the signal from the National Bank, the Ministry of Industry, Commerce and Supplies banned the import of vehicles and motorcycles of various segments. NADA failed to receive and defend this information. While the businessmen who received the information were able to open LCs through personal lobbying, some businessmen were unable to do anything.
In particular, the issue of vehicle tax is given priority in the economic act brought by the government every year. The tax determined in this way has become controversial every year. Powerful businessmen are lobbying in a way that benefits only their companies. In such lobbying, even the government is failing to determine a fair tax rate on vehicle tax.
The Nepal Rastra Bank increased the down payment for electric vehicles from 20 percent to 40 percent last month. NADA could not do anything about it.
Recently, NADA has become very weak in policy lobbying and unable to raise issues institutionally. Due to internal disputes, they are competing internally. Currently, there is fierce competition in policy lobbying between petroleum vehicles and electric vehicles. The government has fixed a low tax rate to promote electric vehicles. In this way, electric vehicle importers are also evading taxes by showing low capacity in the low tax rate.
These issues had started a division within NADA. Currently, Karan Chaudhary is the president of NADA. The issue of who will become the president after him has not been decided yet. The amendment to the statute made by NADA has also not been able to take shape. NAIMA has put forward businessman Suraj Vaid for policy lobbying. Vaid has good relations with the high political leadership. That is why Vaid has been put forward. A businessman familiar with the auto sector says, “NADA has made collective bargaining impossible, from secrecy to business interests, it has become visible. Now NAIMA has paved the way for collective bargaining. Policy lobbying becomes stronger.”
Only all the main investors are participating in the organization. No other person will be allowed to sit as a representative in this organization. Two powerful families in the auto sector have not participated in the organization. The directors of Sipradi Trading Pvt. Ltd., which sells Tata brand vehicles in Nepal, Hero, Suzuki, Chaudhary Group, which sells various electric vehicles, and MAW Enterprises, which sells vehicles and motorcycles including Yamaha, Deepall, are not participating.
Who are the businessmen in Naima ?
The committee members include Sudhirraj Ghimire, director of Continental Trading Int. Ltd., which sells Kia and Isuzu. Hansraj Hulaschand & Co. Ltd. and former president of the Federation of Nepalese Chambers of Commerce and Industry Shekhar Golchha are also members. He has been selling Bajaj, KTM and recently Triumph motorcycles.
Saurabh Jyoti, director of Shaker Trading, which sells Honda motorcycles and scooters, is also a member. Similarly, Cabinet Shrestha, director of Agni Incorporated, which sells Mahindra and Jawa company motorcycles, is a member. Hemant Golchha, director of Shangrila Motor Pvt. Ltd., which sells Citroen, Leaf Motor, Peugeot vehicles, is a member.
Sandip Kumar Sharda, who sells Omoda Zeco and Nissan vehicles, is also a member. Nirakar Shrestha, director of Laxmi Motor Corporation, which sells Hyundai, SML, Isuzu, Kia, and BMW vehicles, is also a member. Yamuna Shrestha, director of Cymax Inc. Pvt. Ltd., which sells BYD vehicles, has also become a member.
Nikunj Agrawal, director of Paramount Motors Pvt. Ltd., which sells MG, Wheeling, and Mazda vehicles, is also a member. Uday Kabra, director of Omni Motor Pvt. Ltd., which sells Bharat Bench vehicles, is also a director.
प्रतिक्रिया दिनुहोस्