Kathmandu : The NADA Automobiles Association of Nepal has expressed dissatisfaction over the monetary policy for the fiscal year 2081/82 issued by Nepal Rastra Bank (NRB). In a press release, NADA stated that the new policy will create significant challenges for businesses engaged in the electric vehicle (EV) sector.

According to NADA, “The mid-term review of the monetary policy for the fiscal year 2081/82 has set the loan-to-value (LTV) ratio for all types of personal and electric vehicles at 60 percent. As a key stakeholder in the automobile industry, NADA is deeply concerned about this decision.”

The association has long been advocating for an increase in the LTV ratio for petrol and diesel vehicles from 50 percent to 75 percent to help revive Nepal’s sluggish automobile sector. However, NRB’s mid-term review has fixed the LTV ratio for all personal and electric vehicles at 60 percent.

“While the decision to increase the LTV ratio for petrol and diesel vehicles is commendable, we had higher expectations. Applying the same LTV limit to electric vehicles, however, will significantly impact businesses operating in the EV sector,” the press release stated.

NADA further emphasized that the government has long prioritized green energy and has been providing special facilities for electric vehicles. However, the mid-term review of the monetary policy contradicts this approach and undermines the government’s commitments to clean energy.

NADA believes that this policy will lead to a decline in electric vehicle adoption in Nepal. To ensure compliance with the government’s declared policies and to safeguard investments in the EV sector, the association has urged Nepal Rastra Bank to maintain the previous LTV ratio of 80 percent for electric vehicles.