Nepal's Auto Sector Aims for 'Made in Nepal' Transformation Within a Decade, Says Saurabh Jyoti

Nepal's burgeoning automobile sector is poised for a significant transformation, with a visionary goal to transition from a "Make in Nepal" assembly hub to a full-fledged "Made in Nepal" manufacturing powerhouse within the next five to ten years. This ambitious outlook was articulated by Saurabh Jyoti, a prominent entrepreneur and founder of Naima, during a recent dialogue at the Naima Mobility Expo 2026. The discussion, aptly titled 'Bridging the Gap in Education, Skills, and Entrepreneurship in Nepal through the Process of Attracting Talent and Sending Workers Abroad,' underscored the critical steps required to achieve this industrial leap.

Jyoti emphasized that while Nepal has made commendable progress in establishing assembly industries for both four-wheelers and two-wheelers – with over a dozen such facilities now operational, including Hyundai for cars and major brands for motorcycles and scooters – the true essence of industrialization lies beyond mere assembly. The next crucial phase, he argued, involves a concerted effort to localize the production of parts and components, thereby strengthening the domestic supply chain. This phased approach, starting with assembly using imported parts and gradually moving towards indigenous manufacturing, is a natural progression for any developing industrial economy.

The entrepreneur clarified the distinction between "Make in Nepal" and "Made in Nepal." "Make in Nepal" represents the initial stage of industrialization, where products are assembled within the country, often relying heavily on imported components. "Made in Nepal," conversely, signifies a more advanced stage where a substantial portion of the product's components and materials are sourced and manufactured domestically. Jyoti expressed strong confidence that with strategic planning and consistent policy support, Nepal can achieve this transition, significantly increasing local content in its automotive products within the projected timeframe.

The economic implications of this industrial expansion are substantial. Jyoti highlighted the significant contribution of the automobile sector to Nepal's national economy and government revenue. According to data from the fiscal year 2082/83, the sector accounts for approximately 7% of the nation's Gross Domestic Product (GDP) and generates around NPR 89 billion in government revenue. This underscores the sector's pivotal role not just in industrial development but also in fiscal stability and economic growth.

However, achieving the "Made in Nepal" vision requires more than just private sector initiative. Jyoti called for robust government support, emphasizing the need for clear timelines and consistent industrial policies. Such policies would provide the necessary framework and incentives for businesses to invest in local manufacturing capabilities, fostering an environment conducive to growth and innovation.

Beyond traditional manufacturing, Jyoti also lauded the government's proactive stance on promoting electric vehicles (EVs) and other clean energy-based transportation. He views policies aimed at increasing the adoption of EVs and blending ethanol with petrol as positive steps towards reducing Nepal's reliance on imported fossil fuels and mitigating environmental pollution. Expanding ethanol usage, in particular, could leverage local agricultural resources and significantly curb foreign exchange outflows currently spent on petrol imports, thereby bolstering national economic resilience.

The expansion of the automobile industry is also a powerful engine for employment generation and technical skill development. Jyoti proudly noted that many of Nepal's assembly industries exhibit a low dependence on foreign workers, with Nepali professionals capably managing various functions, from production and quality testing to overall management. This demonstrates the growing capacity of the local workforce.

Yet, a critical challenge remains: the paradox of skilled Nepali labor migrating abroad while the domestic industry sometimes struggles to find adequately skilled personnel. Jyoti attributed this disconnect to a significant gap between academia and the private sector. He pointed out that while educational institutions impart theoretical knowledge, there's often a mismatch with the practical skill sets required by modern industries. To bridge this gap, he advocated for a comprehensive revision of educational curricula to align with industry needs, ensuring that the workforce is equipped with relevant, job-ready skills.

Concluding his address, Jyoti underscored the private sector's immense contribution to Nepal's economy, generating approximately 86% of jobs and contributing around 82% to the GDP. He firmly believes that if private sector entrepreneurs are accorded due respect and their investments are secured through a stable and supportive policy environment, Nepal's economy is poised for unprecedented growth in the coming decade. This vision of a self-reliant, industrially advanced Nepal, driven by a thriving automobile sector, offers a compelling narrative for investors looking at long-term opportunities in the Himalayan nation.