'The Next Five Years Will Be Transformational for Nepal’s Auto Industry: Karan Chaudhary'

Karan Chaudhary
Executive Director, CG Holdings
President, NADA Automobiles Association of Nepal

Karan Chaudhary, Executive Director of CG Holdings and President of NADA Automobiles Association of Nepal, is at the forefront of an organization that is shaping the country’s automobile industry in times of rapid change. NADA has remained the primary voice of the sector, navigating post-Covid recovery, shifting market trends and the growing momentum of electric vehicles.

In a recent conversation with Business 360, Chaudhary reflected on the challenges and opportunities facing Nepal’s automobile sector. From regulatory uncertainty and customs costs to limited infrastructure, the industry continues to adapt with resilience. At the same time, the rise of electric vehicles has opened up new possibilities for cleaner mobility, spurring dialogue on charging networks, traffic planning and consumer-friendly policies.

Chaudhary emphasised the importance of stable reforms, collaboration between associations and a unified voice when engaging with policymakers.

Looking ahead, he envisions the next five years as transformative, with EVs and hybrids set to dominate the market and local vehicle assembly becoming a realistic prospect. Through NADA’s initiatives, from awareness campaigns to innovation showcases like the NADA Auto Show, he believes Nepal is well positioned to accelerate toward a more sustainable and future-ready automobile sector.

How would you describe the current state of Nepal’s automobile sector, especially post-Covid and in context of rising EV interest?

Nepal’s automobile sector has come a long way since Covid. The initial rebound was cautious, but today, the rising popularity of electric vehicles has given the market new momentum. EVs are no longer a niche subject; they have entered mainstream conversation with growing enthusiasm among consumers. The sector is still evolving but this transition is an exciting opportunity to shape Nepal’s mobility future in a cleaner, smarter direction.

What are the biggest regulatory or infrastructure-related challenges that automobile importers and dealers are facing right now in Nepal?

Challenges exist such as regulatory uncertainty, customs costs and limited infrastructure. But these are also opportunities to build stronger foundations. The growth of EVs has already pushed conversations on charging networks, road upgrades and urban traffic planning. Step by step, with government and private sector coordination, these hurdles are transforming into pathways for long-term modernisation. 

We see great opportunity in stable, long-term tax policies, a clear EV adoption roadmap, simplified customs processes and consumer-friendly financing. With these reforms, Nepal can ensure that mobility is affordable, sustainable and forward-looking. The government has already shown commitment by keeping duties stable this year, a positive step we deeply appreciate.

Given the government’s focus on electric vehicles, how ready is the market in terms of consumer demand, charging infrastructure and after-sales service?

Consumer readiness is very encouraging, especially in cities where EV adoption is visible every day. The charging ecosystem is still young but it is growing steadily, and after-sales services are being developed across the country. What we are seeing is the natural early stage of a long-term transition. With coordinated investment and stable policies, Nepal can accelerate toward becoming an EV-friendly nation faster than many expect.

Vehicle sales have been heavily impacted by import restrictions and liquidity issues in the banking sector. How is the industry adapting?

The industry has shown remarkable resilience. Businesses have adapted by diversifying their product lines, introducing flexible finance schemes, and focusing on after-sales service to keep customer trust strong. These adaptations are not temporary fixes; they are building a more sustainable and innovative business culture that will serve the industry well into the future.

Has there been any concrete progress in your recent dialogues with the government regarding tax structure, EV incentives or fuel pricing policies?

Our dialogue with government has been constructive. Discussions on tax rationalisation, EV incentives and fuel pricing mechanisms are progressing well. Some commitments have been made and while implementation takes time, we are confident that continuity of dialogue will deliver results. There is a clear willingness on all sides to move toward solutions.

Nepal Automobile Importers and Manufacturers Association was recently established. How do you view this development in relation to NADA’s role?

We welcome any initiative that seeks to strengthen the industry. At the same time, NADA has been the trusted voice of Nepal’s automobile sector for nearly three decades. With our broad mandate covering the entire value chain and our institutional credibility, NADA remains the principal umbrella organisation. We believe collaboration, not competition, will serve the industry best.

Is there any overlap or confusion between NADA and NAIMA, or are the responsibilities and mandates clearly different?

There is no confusion. NADA has a long-standing mandate across all vehicle categories and allied sectors. Any new association can complement efforts by defining its focus clearly. Ultimately, our common goal is the prosperity of Nepal’s automobile industry, and that requires harmony rather than duplication.

Where do you see the automobile industry heading in Nepal over the next five years? 

The next five years will be transformational. EVs and hybrids will dominate, and with the right policies, local assembly is a very real possibility. Regional dynamics, particularly Nepal’s proximity to India and China, create opportunities for us to attract investment and integrate into global supply chains. This is not just a dream; it is within reach.

How is NADA planning to support innovation and sustainability within the industry, for example, promoting EVs, hybrid technologies or cleaner fuels?

NADA is fully committed to the future. Through awareness campaigns, capacity-building and global collaborations, we are driving the conversation on EVs, hybrids, and cleaner fuels. The NADA Auto Show 2025 will be a living platform where innovation meets the public – from e-mobility to robotics to future transport.

Will NADA be taking a more active role in helping its members adapt to global trends like digitisation, subscription models and ride-sharing?

We are helping our members embrace digital transformation, explore new mobility models like subscriptions and ride-sharing, and connect with customers in modern ways. The industry is evolving globally, and Nepal will not be left behind. NADA intends to lead this transition, ensuring that our members, and Nepal, remain at the forefront of change.