Nepal’s automotive industry fractures as NADA faces bold challenge from breakaway NAIMA

KATHMANDU: Nepal’s automotive sector, a critical pillar of the nation’s economy, is facing an unprecedented schism as the NADA Automobile Association of Nepal, the industry’s long-standing representative body, contends with a formidable rival born from internal dissent. The newly formed Nepal Automobile Importers and Manufacturers Association (NAIMA) has emerged from a rebellion of vehicle importers, splitting the industry into two polarized factions and raising questions about the future of automotive trade in the country.

NADA, established over five decades ago, has historically served as the unified voice of Nepal’s auto businesses, encompassing dealers, importers, and ancillary service providers. However, simmering discontent among vehicle importers—who allege that NADA has failed to prioritize their interests—has culminated in the creation of NAIMA.

Registered with the Kathmandu District Administration Office on February 21, 2025, NAIMA has yet to hold an official launch but is already flexing its influence, challenging NADA’s dominance in a sector vital to Nepal’s transportation and economic framework.

The leadership of the two organizations underscores the divide. NADA is currently headed by Karan Chaudhary, a prominent businessman and the official importer of Suzuki vehicles in Nepal. Meanwhile, NAIMA has tapped Ritu Singh Baidya, Managing Director of United Traders Syndicate Pvt. Ltd., Toyota’s authorized distributor in Nepal, as its president. Notably, nearly all major vehicle importers have rallied behind NAIMA, with Chaudhary being the conspicuous exception, highlighting the depth of the rift.

NAIMA’s Aggressive Opening Salvo

NAIMA has wasted no time asserting its presence. Within weeks of its registration, the group launched parallel activities to rival NADA’s initiatives, including a successful push to reduce loan facilities for electric vehicles—a move seen as a direct jab at NADA’s policies. This early victory signals NAIMA’s intent to not only coexist but to actively compete for influence over Nepal’s automotive policies and market direction.

The stakes are high in an industry that supports thousands of livelihoods and contributes significantly to the national economy through vehicle sales, spare parts, and related services. The split threatens to disrupt long-standing business relationships and could reshape how automotive trade is conducted in Nepal, potentially affecting pricing, consumer access, and government regulations.

Dueling Auto Shows Set the Stage for Conflict

The rivalry has escalated dramatically with both organizations announcing competing auto exhibitions for 2025, a move that lays bare the intensity of their feud. NADA, sticking to its tradition of hosting its flagship event before the Dashain-Tihar festivals, has scheduled the 17th edition of its “Auto Show 2025” from August 19 to 24 at Kathmandu’s Bhrikutimandap. The association opened stall bookings on March 11, 2025, signaling its determination to maintain its preeminence in the sector.

Not to be outdone, NAIMA has countered with its own “Nepal Mobility Show 2025,” slated for August 4 to 8 at the same venue—just two weeks earlier. The proximity of the dates, separated by a mere nine days, has sparked concerns that the dueling events could dilute their impact, confusing consumers and straining exhibitors.

Critics have likened the situation to the frequent footwear fairs held at Bhrikutimandap, warning that the overlapping shows risk turning a marquee industry event into a repetitive spectacle. Some business leaders have urged reconciliation, arguing that unity is essential to preserve the sector’s credibility and economic clout.

NADA Labels NAIMA a “Rebels’ Club”

NADA has responded to NAIMA’s emergence with sharp criticism, branding the new group a “club of rebels” devoid of clear purpose. A NADA representative, speaking to Corporate Nepal, dismissed NAIMA as “a haphazard group of dissenters driven by the intent to fracture the auto business community and tarnish the industry’s reputation.” The official accused NAIMA of cherry-picking importers while sidelining dealers, questioning, “Do they plan to run the business without dealers? Is that their vision?”

The NADA spokesperson further argued that NAIMA’s leadership fails to acknowledge the interconnected ecosystem of dealers, spare parts suppliers, lubricant providers, tire vendors, battery manufacturers, and accessory businesses—all of which, they contend, are vital to the industry’s health. In contrast, NAIMA’s founders assert that NADA has devolved into a “crowd of sub-dealers” dominated by political maneuvering rather than a focus on advancing the broader automotive sector’s interests.

Roots of the Rebellion

NAIMA’s formation stems from long-standing grievances among importers and manufacturers who feel marginalized by NADA’s leadership. They argue that the association has prioritized the concerns of smaller dealers over those of major importers, who drive the bulk of vehicle sales and innovation in Nepal.

Frustrated by what they perceive as NADA’s inability to address critical industry-wide issues—such as regulatory advocacy, infrastructure support, and market expansion—these importers have taken the drastic step of forming a rival body to amplify their voice.

However, NADA’s leadership remains defiant, rejecting claims of inadequacy and accusing NAIMA of sowing discord for self-serving ends. The association insists it remains the legitimate representative of Nepal’s auto industry, pointing to its decades-long track record of fostering growth and stability.

A Sector at a Crossroads

As the standoff intensifies, Nepal’s automotive industry stands at a pivotal juncture. The emergence of NAIMA introduces a new dynamic that could either invigorate competition and innovation or fracture the sector into competing fiefdoms, undermining its collective bargaining power with the government and international partners. For consumers, the split could mean greater variety in offerings—or confusion and higher costs as the market adjusts to the upheaval.

With both organizations digging in their heels, the coming months will be critical. The success of their respective auto shows in 2025 will serve as a litmus test for their influence and legitimacy. For now, the industry watches warily as NADA and NAIMA vie for supremacy, their rivalry threatening to redefine the contours of Nepal’s automotive landscape in ways that could reverberate for years to come.