The Federation of Nepalese Chambers of Commerce and Industry (FNCCI) president Anjan Shrestha has urged the government to change its approach towards the auto industry, saying it contributes about 8–9% of total state revenue.
Speaking at the **grand opening of NADA Auto Show 2026 in Kathmandu, Shrestha said around Rs 106 billion worth of vehicles and auto parts were imported in the last fiscal year, from which the government collected roughly Rs 81–82 billion in taxes**. He argued that a sector providing such a large share of revenue should not be treated as an "unproductive" industry.
Shrestha warned that if the government focuses only on opening new industries and reviving long-closed factories while neglecting currently operating businesses, the overall economy could face deeper trouble. He described a sharp fall in both purchasing power and market demand, adding that in his 36-year business career he has never seen business sentiment this weak.
He welcomed the new government’s goals of raising per capita income to USD 3,000, building a USD 100 billion economy and creating around 1.2 million jobs in 5–7 years, but stressed that there is still no clear action plan or policy framework to achieve these targets. Shrestha said Nepal’s economy needs a broad “re-engineering” so that budget announcements translate into real changes on the ground, with the auto sector treated as a key revenue pillar rather than a soft target for taxes and restrictions.
Writes on vehicle pricing, taxation and the Nepali auto market from ongoing tracking of distributor price lists. Editorial policy.
