Morang Autoworks has completed the construction of a Yamaha assembly plant in Nepal. The Japanese automobile maker’s Nepali authorized distributor established the plant in Ramgram, Nawalparasi, and will soon start commercial production.
The assembly plant was completed at the cost of Rs 1.5 billion.
Yamaha resorted to establishing the assembly plant in Nepal after the government cut excise and customs duty for auto assembly parts. Companies like TVS and Hero have also initiated similar plans for the Nepali market.
Milan Babu Malla, MD of Risik Automobiles, an official Yamaha dealer said the company has rapidly built infrastructure for the assembly plant. He shared that the shade is ready and soon Yamaha will start assembling bikes in Nepal.
Yamaha had extended its desire to open an assembly plant in Nepal. This only became reality after the government announced huge tax rebates on excise duties. Yamaha approved the assembly plant to Morang Autoworks after its team visited Nepal.
Yamaha Assembly Plant in Nepal starting commercial production soon
The company has already undertaken trial production. In a few months, commercial production will begin.
The assembly plant is spread across 3.20 acres of land. The plant will manufacture 31 thousand units of motorbikes and 19 thousand scooters for the Nepali market.
At the same time, the plant will help employ 144 people among which few will be foreign nationals.
Yamaha R-3, R-15, Fazer-25, FZ-25, FZS V-3, FZS V-2, MT-15, BS-6, FZ V-2, SZ R etc.
On the scooter lineups, the company has Fascino, Razor, Razor Street, Fascino 113, Razor Street Rally 113, etc.
Yamaha plans to assemble its most popular models in Nepal. The other will gradually hit the assembly line.
The models coming through the assembly plant in Nepal would also be slightly less costly for Nepali buyers.
More automakers are starting assembly plants in Nepal. Are we seeing a transformative phase for the business? You can share your insight in the comments below.