Talking to Republica, they said that the government has made owning a vehicle out of reach for majority of people by imposing one of the highest tax rates in the world. "It is unfortunate to note that the government still treats automobile as a luxury and imposes 240 percent duty," Shekhar Golchha, president of NADA said. "Heavy taxes make vehicles expensive and put them beyond the reach of majority of the population."Stating that automobile industry contributes around one-third of total revenue, Golchha said the government isn't investing much on development of roads and transport infrastructures.
"Though road network is expanding, it is not up to the standard," he said. "Automobile penetration in Nepal stands at 6 percent which is one of the lowest penetration rates in the world."
Similarly, Anjan Shrestha, vice president of NADA, said that government has turned dear ears to their demands of increasing people's access to automobiles. "Once people's access to automobiles is increased, it will spur economic activities and make significant contribution to national economy," he added. "The government should either slash customs duties or subsidize vehicle imports through other means."
NADA officials also criticized the government for its failure to open sufficient vehicle fitness testing centers across the country.
NADA Auto Show 2015 begins Tuesday
NADA Auto Show 2015 is beginning at the Bhrikuti Mandap Exhibition Hall in Kathmandu from Tuesday.
The six-day event is being jointly organized by Nepal Automobile Dealers Association (NADA) and Global Exposition and Management Services.
According to the organizers, the event aims to promote Nepal's automobile industry and increase automobile sales ahead of the festive season.
"Responding to the recent earthquake, this year's Auto Show portrays will, strength, and commitment toward development and rebuilding of the economy," Shambhu Prasad Dahal, coordinator of the Auto Show, said.
The event will have 120 stalls of 65 domestic and foreign exhibitors in area spread over 9,000 square meters. The Auto Show, according to organizers, will showcase four-wheelers from 14 brands, two-wheelers from 15 brands and heavy commercial vehicles from five brands.
Renowned automobile brands like Datsun, Daihatsu, Fiat, Ford, Honda, Hyundai, Kia, Nissan, Skoda, Suzuki, Tata, Toyota, Volkswagen, SsangYong, Ashok Leyland, Bharat Benz, Escorts, Aprilla, MV Agusta, Bajaj, Benelli, Hero, Hero Electric, KTM, Mahindra, Royal Enfield, Suzuki, TVS, UM and Vespa, among others, are participating in the Auto Show.
Likewise, the event will also have stalls of financial institutions, and companies dealing on new technological developments, auto safety technology, spare parts, lubricants, tires, generators, garage equipment, batteries and other accessories.
The organizers are expecting at least 50,000 footfalls at the expo.
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