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Hyundai car assembly plant in Nepal, prices expected to decrease by 10%

Hyundai cars will be made in Nepal. The South Korean automaker’s local seller Laxmi Motor Corporation has brought into operation a Hyundai car assembly plant in Nepal, (Parasi).
PM Pushpa Kamal Dahal “Prachanda” inaugurated the benchmark Hyundai assembly plant on Saturday, May 11, 2024. The event was marked to coincide with the 50th diplomatic relationship between Nepal and South Korea.

It’s said that the production of Hyundai cars in Nepal will bring their prices down by up to 10%.

Check out: Hyundai Exter Launching Soon in Nepal | Price and Specs

The plant has been in operation for some months. At the start, Laxmi Hyundai started the production of the compact SUV venue car in Nepal. After six months, the trial production was realized with success. Thereafter, commercial production has been set off as per Laxmi Group executive director Anjan Shrestha.

Likewise, after Venue, i10, Creta i20, and other four-wheelers production will get on the assembly line.

The Hyundai assembly plant in Nepal has the capacity to produce 5,400 cars. Laxmi Motor Corporation has invested over Rs 5 billion in the plant which stretches across 15 bighas of land in Ramgram Municipality in Parasi.

The government has relaxed taxes on assembly plants to encourage market mobility. To illustrate, the customs duty for CKD (Complete Knock-Down) parts import has been lowered by 25% while the excise duty has been relaxed by 50%. This should translate to lower final costs of those Hyundai cars coming off the assembly plant in Nepal.

Check out: Taxes Revised on Electric Vehicles, Inconsistent Policy?

10% less costlier

This means Hyundai Venue, i10, i20, and others that will be assembled in Nepal might be slightly more affordable. It’s expected that they will be 10% cheaper. For example, the Hyundai Venue model E 1.2 2024 is priced at Rs 4,196,000. Its price might come down by Rs 4.20 lakh if we go by the 10% theory. But the official prices will be revealed later.

Hyundai All-New Venue
Hyundai Venue

Over 2 dozen of two-wheeler assembly plants have been registered in Nepal with Bajaj, Yamaha, and Hero having already been at work. But the Hyundai assembly plant is the first among four-wheelers in the country. Let’s hope this brings fruitful results to Nepal’s auto market in terms of price and quality.

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