Over 3,000 vehicles stuck at customs yards

KATHMANDU: Over 3,000 motor vehicles imported from various countries are currently stranded at different customs offices.

The NADA Automobile Association, an industry lobby of automobile dealers in the country, reported that automobile dealers are not releasing vehicles from customs points due to the tightening of lending by banks and financial institutions.

Last year in April, the government imposed a ban on imports of specific goods, including motor vehicles, to prevent the depletion of foreign currency reserves. However, automobile dealers state that motor vehicles had already begun accumulating at customs yards even before the ban as banks had started tightening lending.

Dhruba Thapa, the President of NADA, stated that some automobile dealers had failed to release motor vehicles from customs before the restrictions came into effect. He further mentioned that dealers would not be able to bring those vehicles from customs offices unless the central bank eases auto loans.

According to Surendra Kumar Upreti, the General Secretary of NADA, auto dealers have been unable to bring motor vehicles from customs due to the lack of buyers. He added that dealers are not in a position to pay millions of rupees at present as people are unable to access bank loans.

NADA has reported a significant drop in imports of cars, jeeps, and vans, with imports declining to around 8,000 in the last fiscal year compared to around 18,000 in the previous years.

Although the import ban was lifted on December 16, the automobile business is yet to return to normalcy as buyers continue to face difficulties in obtaining bank loans.