As the autumn festive season approaches, the 18th edition of the NADA Auto Show 2026 is set to open at Bhrikutimandap in Kathmandu on Tuesday, showcasing new automobile technologies and brands of two- and four-wheelers.

Organised by the NADA Automobiles Association of Nepal, the show will run until August 30. This year’s event marks the NADA’s golden jubilee.

More than 150 brands are participating in the show this year, with over 200 stalls featuring vehicles, components, financial services and other products related to the automobile industry. This year’s event is themed “From Industry to Employment.”

NADA’s president Surendra Kumar Upreti said the association has sought to make each edition of the auto show different. “The objective of the auto show is not merely to sell vehicles,” he said. “It is also about exploring where Nepal’s transportation and mobility sector can go and what its future potential looks like.”

Alongside vehicles assembled and manufactured in Nepal, the show is showcasing component manufacturers and spare-parts suppliers and other ancillary businesses that have emerged around the automobile sector.

“If the government formulates a long-term policy over the next 10 years, we could reach a stage where automobiles can be manufactured in Nepal,” Upreti said.

The auto show has given special priority to vehicles made in Nepal this year. Upreti said after-sales services, spare parts, components, banks and insurance are equally important aspects of the automobile business.

Anup Baral, chairman of the NADA Auto Show Committee, said Nepal has significant potential for industrialisation in the automobile sector.

“This year, we are trying to home in on that message,” Baral said. “Establishing a large-scale industry requires first building the capacity to manufacture small components. The auto show demonstrates that Nepal has that potential.”

The show has a separate Nepal Pavilion for ‘Made in Nepal’ products. Vehicle batteries are now produced in Nepal, and key two-wheeler brands occupying a major domestic market share are assembled locally. New-generation electric vehicle concepts are also being developed in Nepal.

Even helmets for two-wheelers are now manufactured domestically.

The organiser said the auto show will also focus on Nepal’s infrastructure needs and the potential for developing an automobile industry. The vehicle market has been expanding each year, with the growth of electric vehicles further increasing the sector’s potential.

More than 14 two-wheeler brands are participating in the show, including those whose vehicles are assembled in Nepal.

“We have also included banks and financial institutions,” Baral said. More than 70 different automobile components are being displayed at the show, he added. “Of these, 15 to 20 products are made entirely in Nepal. Starting production in Nepal is not a simple challenge.”

He said the monetary policy and budget for the current fiscal year had created some optimism in the sector. The policy environment now allows financing of up to 80 percent for commercial vehicles.

“We are still urging the authorities to increase the loan limit in relation to vehicle prices,” Baral said.

He said poor road and infrastructure conditions are creating additional risks and costs for commercial vehicle operators.

“Bringing a new vehicle from the Rasuwagadhi border to Kathmandu involves substantial costs,” he said. “Once the vehicles arrive here, poor road conditions often lead to additional maintenance requirements. Electric vehicles are even more sensitive.”

Baral said the automobile sector could play an important role in creating employment in Nepal at a time when many young people are forced to leave the country for work.

“The automobile sector is trying to demonstrate that industries can operate in Nepal and create employment here,” he said.

The automobile sector currently generates around 100,000 direct jobs and more than one million indirect jobs, according to Baral.

This year, electric vehicles are expected to remain a major focus of the auto show, reflecting their growing presence in Nepal’s automobile market.

Ankit Dahal, head of training and business development at BYD, said the company is planning to establish a battery repair centre in Nepal.

Compared to the situation two or four years ago, charging infrastructure for electric vehicles has developed significantly in Nepal, Dahal said. There is no longer a major shortage of charging stations along most major highways, with the charging network covering highways at intervals of roughly 50 to 60 kilometres.

Both the government and private sector are making substantial investments in charging infrastructure. The Nepal Electricity Authority is also operating its own charging stations, making long-distance travel in electric vehicles easier than in the past.

“However, there is still room for improvement. As soon as you move into relatively remote areas away from the main highways, charging infrastructure becomes scarce,” Dahal said. “In some places, there is not enough electricity to operate charging stations. The transmission network is weak and voltage fluctuations are common.”

Expanding charging infrastructure in remote areas remains a major challenge.

Various companies are working with the government and the Nepal Electricity Authority to improve electricity networks in remote areas and establish charging stations. But where electricity has not yet reached rural areas, installing charging stations is not possible.

“Nepal’s adoption of electric vehicles is at a good level by global standards,” Dahal said. “If we can now expand electricity and road infrastructure in rural areas, the charging problem will also be resolved to a large extent.”

Battery management is another emerging challenge as electric vehicle adoption grows. Most automobile companies currently provide warranties of eight to 10 years for batteries.

Most four-wheel electric vehicles use lithium iron phosphate (LFP) batteries, which have a relatively long lifespan. Dahal said batteries do not necessarily have to be discarded immediately after their warranties expire.

“Even after the warranty expires, the batteries do not necessarily have to be discarded immediately,” he said. “They can be given a second life. Although battery capacity may decline, the cells that retain capacity can be used for purposes such as solar energy storage.”

Discarding and destroying batteries should be considered only as a final option, Dahal added. “For this purpose, we have already partnered with companies in China and India involved in battery management, repair and reuse.”

Nepal, however, lacks adequate infrastructure for battery repair and management.

“Therefore, we are planning to establish a basic battery repair centre in Nepal,” Dahal said.

Initially, BYD plans to start on a small scale by opening batteries, separating damaged cells and reusing cells that can be repaired.

“Our target is to begin this work by the end of 2026,” he said.