The global automaker Hyundai in collaboration with Laxmi Motor Corporation, the officially authorized distributor of Hyundai vehicles in Nepal, established a new assembly plant in Nawalparasi, Nepal. The inauguration event, which took place on Friday, saw the presence of Nepal’s prime minister, Prachanda. This marked a significant milestone for the country’s automotive sector.
The plant, constructed through a joint venture between Hyundai and Laxmi Motor Corporation, is ready to take its place as a strong contender in the local auto industry.
They officially started manufacturing from Friday, May 10.
The event was inaugurated by Prime Minister Prachanda himself.
The inauguration, which is also the 50th anniversary of Nepal-Korea diplomatic relations, illuminates the economic relations building among Nepal and Korea countries. The investment of Hyundai into Nepal not only improves the auto sector of Nepal but also deepens bilateral relations.
Boosting Domestic Production
Initially, the factory is going to manufacture the Hyundai Venue, the most popular SUV of Hyundai. With local production initiated now, Nepal will be able to serve as a manufacturing hub for Hyundai trucks, thus leading to more vehicles available for purchase and time for faster delivery for the Nepali buyers.
Economic Development and Job creation
The construction of the assembly plant by Hyundai should bring along a lot of positive economic changes. The project has produced 300 jobs in the first phase of development besides the plans to expand the number of jobs in the future.
Through this production, Nepal’s automotive industry undoubtedly achieved a milestone. Moreover, the firm will begin with low-scale manufacturing by producing 8,000 cars per year, which will be the launchpad for more complex projects and will attract other car manufacturers to set up their factories in the country. The distance traveled, that is, Nepal’s journey toward becoming an independent car market, has begun.
Also Read: https://whatthenepal.com/2024/05/10/mca-nepals-new-butwal-substation-project-underway/
