May 9: Globally acclaimed Hyundai cars are now going to be assembled in Nepal. Laxmi Motor Corporation, which is the authorized distributor of Hyundai vehicles for Nepal, is all set to inaugurate an assembly plant in Nepal within this week.

The plant is about to be inaugurated on the 50th anniversary of the establishment of diplomatic relations between the Republic of Korea and Nepal. Prime Minister Pushpa Kamal Dahal is scheduled to attend the inauguration of the assembly plant on Friday.

Laxmi Motor Corporation, the official dealer of Hyundai vehicles for Nepal, is a subsidiary of Laxmi Group.

The company has already established the plant in Nawalparasi and has been assembling Hyundai Venue SUVs in the testing phase since the last six months.

With the success of the trial production, Hyundai brand Venue is about to go into commercial production at the assembly plant. As it will be assembled in Nepal, it is believed that the price range will also be cheaper.

The company claimed this is the first time that a four-wheeler assembly plant has come into operation in Nepal.

However, a decade ago, Hulas Motors had produced the Mustang Max in Nepal. Since the plant was closed due to pollution standards, there isn’t any other four-wheeler assembly plant operating in Nepal.

Six years ago, the Korean company Motrex had announced to open a car assembly plant in Nepal but the work was not progressed.

Speaking to New Business Age, South Korean Ambassador to Nepal, Park Tae-Young said that after a company like Hyundai starts an assembly plant in Nepal, other Korean companies will also be encouraged to follow suit.

“Like Nepal, Korea also entered the world market of automobiles through assembly plants. Nepal can also produce its own cars in the near future," he said.

According to the company, they have started importing and assembling 998 cc Venue S (O), 1197 cc Venue S 1.2 MT and 1197 cc Venue SX 1.2 MT model CKDs at the plant.

The assembled vehicles are all powered by petrol engine.