Hyundai India Sets Up Manufacturing Facility In Nepal

Hyundai Motor India Limited (HMIL) and Laxmi Group of Nepal have started production of the Venue in Nepal. A four-wheeler assembly plant has been set up in Nepal after almost a decade and the new facility will have an annual capacity of 5,000 units.

The factory was inaugurated on May 10, 2024, in the presence of Pushpa Kamal Dahal, Prime Minister of Nepal, Tae-Young Park, Ambassador of the Republic of Korea and Unsoo Kim, MD & CEO, HMIL. The Indian arm of the South Korean manufacturer said the production and sales of Hyundai models in Nepal will be handled by Laxmi Group and Hyundai Motor Company and HMIL will provide constant support in terms of products, technology and quality. 

Nepal previously had another four-wheeler manufacturing facility owned by Hulas Motors, which ceased operations in 2015 due to government policies. The country already has two-wheeler and three-wheeler manufacturing facilities.

This is also the first time an Indian subsidiary of a multinational automobile company has helped set up a manufacturing facility outside India. Previously, only Indian manufacturers have ventured into setting up a manufacturing facility overseas. Notable examples include TVS Motor Company’s facility in Karawang, Indonesia, Bajaj Auto’s facility in Brazil, Mahindra and Mahindra’s facilities in North America, Africa and Australia and Tata Motors plants in Europe, Asia and Africa. 

Laxmi Group has been one of the top distributors of Hyundai models in Nepal since 2009 and has a presence in over 15 towns in India’s neighbouring country. Hyundai retails the Exter, Grand i10 Nios, Venue, Creta, i20, Aura, Tucson, Santa Fe, Palisade, Kona Electric, Ioniq 5 and the Staria Ambulance in Nepal.