"There will be severe shortage of new vehicles during festive season"

KATHMANDU, SEPTEMBER 1: Automobile traders have decried the recent government decision to extend the ban on the import of four-wheelers till October 14. According to the Nepal Automobile Dealers’ Association (NADA), the very decision will create a shortage of new vehicles in the market during the approaching festive season.

“Due to the import restrictions on new cars, vans and jeeps imposed some five months back, there has already been a short supply of s these vehicles.  With the extension of the period of such restrictions, the very scarcity is sure to grow more severe during the upcoming festivals,” Dhruba Thapa, President, NADA, was quoted by media sources as saying.

 Even though the cars, vans, and jeeps account for just one percent of the total import, they pay as much as Rs 30 billion in revenue to the State.  The share of the very revenue amount is around 9 percent in the total revue.   

Thapa further claims that the failure of the government to inform the automobile traders about the extension of the vehicle ban in a timely has also hampered them. “Because of the very failure, we have been forced to abruptly cancel the import orders. As such, the business perception of the foreign companies towards their dealers has gone negative.”

Before this, the traders are said to have canceled the import order for three times.