Last Updated on May 14, 2026 by Automobile Hive
Hyundai’s Nepal Assembly Plant Celebrates Two Years, Paving the Way for Future EV Production
Kathmandu, Nepal – A significant milestone has been achieved in Nepal’s burgeoning automotive sector as Laxmi Motor Corporation’s Hyundai assembly plant in Ramgram, Parasi, successfully completes two years of operation. Inaugurated by the then-Prime Minister on Baisakh 28, 2081 BS (May 11, 2024), this state-of-the-art facility has been instrumental in localizing vehicle production, bringing advanced manufacturing capabilities to the heart of Nepal.
The plant, a venture under the esteemed Laxmi Group, has quickly become a cornerstone of the domestic auto industry. Its establishment marked a new era for Hyundai in Nepal, transitioning from solely importing to assembling popular models right here on Nepali soil.
Current Production: Hyundai Creta and Venue Lead the Charge
Since its inception, the Laxmi Motor Corporation plant has focused on assembling two of Hyundai’s most popular sub-four-meter SUVs: the Hyundai Venue and the Hyundai Creta. These models have consistently been top sellers in Nepal, known for their robust performance, comfortable interiors, and suitability for Nepal’s diverse road conditions, ranging from bustling city streets to challenging hilly terrains.
Company sources confirm that the production lines are currently dedicated to these two petrol-powered SUVs. Despite the Nepal government’s strong emphasis on promoting electric vehicles (EVs) and the growing popularity of brands like BYD (through Cimex Inc. Pvt. Ltd.), MG, and Tata (through Sipradi Trading Pvt. Ltd.) in the EV segment, the plant has not yet begun large-scale EV production. While the necessary infrastructure for EV assembly is reportedly in place, the current cost implications of local EV production make it commercially unviable at this moment. This highlights a critical challenge for local manufacturers in balancing government policy with market realities and economic feasibility.
A Glimpse Inside the High-Tech Facility
Laxmi Motor Corporation has invested a staggering NPR 2 billion to establish this advanced assembly plant. Spanning over 10 bighas of land in Ramgram, Parasi, the facility boasts a comprehensive setup including shed construction, an efficient assembly lineup, dedicated testing centers, and a purpose-built track for final road tests. This meticulous planning reflects the company’s long-term vision for automotive manufacturing in Nepal.
In its two years of operation, the plant has successfully rolled out approximately 2,000 units of SUVs. The strong market demand for the Hyundai Creta and Venue has been a key driver in achieving this production milestone. Beyond manufacturing, the plant has also made a significant economic contribution, generating around NPR 600 crore in revenue for the government in the past two years. Currently, it employs approximately 200 engineers and other skilled personnel, contributing to local employment and skill development.
Future Vision: Accelerating Towards EV Production and Localization
Looking ahead, Laxmi Motor Corporation has unveiled an ambitious two-year strategy that underscores its commitment to the Nepali automotive landscape. The company plans an additional investment of NPR 2 billion, with a significant focus on initiating EV production. This strategic move aligns with global automotive trends and Nepal’s own push for sustainable transportation.
With this enhanced investment, the plant aims to significantly ramp up its production, targeting 6,000 units within the next two years. Furthermore, a key pillar of this strategy is ‘localization,’ prioritizing the production of components within Nepal. This step is crucial for reducing import dependency, boosting local industries, and creating a more self-reliant automotive ecosystem.
This expansion is also projected to create an additional 400 job opportunities, further bolstering employment in the region. Nirakar Shrestha, Executive Director of Laxmi Group, emphasized this vision, stating, “Increased investment and localization are our primary goals. We have entered an era of car production, and our plan for the next two years is to add value and elevate the assembly industry to the next level.”
Crucially, the plant was designed with a long-term perspective. The existing assembly line can be expanded with minor modifications to accommodate EV production, indicating foresight in its initial planning. This flexibility will allow a smoother transition into manufacturing electric vehicles as market conditions and policy frameworks become more favorable.
Unlocking Value: Significant Price Relief for Nepali Consumers
One of the most immediate and tangible benefits of local assembly has been the substantial price reduction for Hyundai vehicles, providing much-needed relief to Nepali consumers. The company reports that the prices of locally assembled Creta and Venue models have dropped by up to 10% compared to their imported counterparts.
For instance, the top-spec variant of the Hyundai Creta (SX Optional Automatic), which previously retailed for NPR 8,796,000, is now available at a significantly reduced price of NPR 7,896,000 after local assembly. This translates to a massive saving of NPR 900,000 for buyers, making these popular SUVs more accessible to a wider segment of the Nepali market. Such price adjustments are vital in a price-sensitive market like Nepal, where import duties and taxes often inflate vehicle costs considerably.
What This Means for Nepali Buyers
The two-year anniversary of Hyundai’s assembly plant in Nepal is more than just a ceremonial milestone; it represents a tangible step forward for the country’s automotive industry and a direct benefit for consumers. For Nepali buyers considering a new vehicle, the local assembly offers several advantages:
- Reduced Prices: As demonstrated by the Creta, local assembly directly translates to lower purchase prices, making premium vehicles more affordable.
- Faster Availability: Local production can lead to quicker delivery times and better inventory management compared to fully imported units.
- Enhanced Service and Support: With a stronger local manufacturing base, it’s expected that after-sales service, spare parts availability, and technical support will further improve, leveraging the existing robust network of Hyundai (Laxmi Intercontinental) service centers across Nepal.
- Future-Proofing with EVs: The commitment to future EV production aligns with Nepal’s growing EV charging infrastructure, including the NEA network and over 1200 charging stations nationwide. While specific EV models and prices are yet to be announced, the groundwork is being laid for a future where ‘Made in Nepal’ electric vehicles could be a reality.
As Laxmi Motor Corporation continues to invest and expand its operations, the future looks bright for the Nepali automotive sector, promising more localized content, job creation, and ultimately, more accessible and relevant vehicles for the discerning Nepali consumer.
