KATHMANDU: It has been two years since Hyundai Motor Company vehicles started being assembled in Nepal. The assembly plant operated by Laxmi Motor Corporation is now preparing to begin EV production in the coming years.
The company started vehicle assembly at its Ramgram-based plant in Parasi on May 10, 2024. The facility was inaugurated by the then Prime Minister. Currently, the plant is assembling the Hyundai Venue sub-4-meter SUV and the Hyundai Creta compact SUV.
The plant was established at a time when the government was promoting EV adoption. However, large-scale production of petrol-powered vehicles has remained limited due to changing market demand. Although the infrastructure for EV production is already in place, the company says higher production costs have delayed the start of local EV assembly.
Built with an investment of Rs 2 billion, the high-tech plant spans 2.5 hectares of land in Ramgram. The facility includes assembly lines, testing centers and a dedicated road-testing track. Around 2,000 SUVs have been produced from the plant in the last two years.
According to the company, strong demand for the Hyundai Creta and Venue helped the plant achieve the production milestone despite the growing popularity of electric vehicles. The company has also contributed around Rs 6 billion in revenue during the period.
Around 200 engineers and other staff are currently employed at the plant.
Laxmi Motor Corporation has now announced plans to invest an additional Rs 2 billion over the next two years. The new investment will mainly focus on EV production and localization of vehicle components.
The company aims to increase production capacity to 6,000 units within the next two years. It also plans to create around 400 additional jobs during the period.
“We are already in the era of vehicle manufacturing. Our focus now is on increasing value addition and taking the assembly industry to the next level,” said Nirakar Shrestha, Executive Director of Laxmi Group.
The company said only minor expansion is needed in the current assembly line to begin EV production. Since the plant was built with a long-term strategy, transitioning to EV assembly is expected to be easier.
Local assembly has also helped reduce vehicle prices in Nepal. According to the company, prices of the Hyundai Creta and Venue have dropped by up to 10 percent after local production began.
The top variant of the Hyundai Creta, which earlier cost Rs 8.796 million, is now available at Rs 7.896 million after the start of local assembly.
