In a significant development for Nepal’s automotive industry, Laxmi Motors Corporation has inaugurated the country’s first-ever Hyundai vehicle assembly plant in Nawalparasi district. The facility’s launch was graced by Prime Minister Pushpa Kamal Dahal, who expressed confidence that this initiative will contribute to economic transformation and provide Nepali consumers with access to more affordable vehicles.
Addressing the event, Prime Minister Prachanda reiterated the government’s commitment to fostering an investment-friendly environment and nurturing public-private partnerships to drive economic growth.
“Without private sector investment and cooperation between the state and the private sector, the country’s economy cannot grow, productivity cannot increase, employment opportunities cannot be created,” he stated.
The Prime Minister emphasized the government’s resolve to facilitate investment, promote the private sector, and protect investor interests. “To create an investment environment within the country, to promote the private sector, to protect and facilitate investment sectors, the government is always with us,” he assured.
Prachanda expressed optimism that Laxmi Motors’ Hyundai assembly plant would attract further domestic and foreign investment to Nepal’s industrial landscape. He highlighted the potential benefits, including import substitution, job creation for skilled and semi-skilled workers, and a positive contribution to the nation’s gross domestic product (GDP).
A key advantage touted by the Prime Minister is the availability of locally assembled vehicles at discounted prices for Nepali consumers. He also noted the plant’s role in promoting the consumption of domestic resources, including electricity, and fostering local development partnerships.
Addressing concerns about policies and regulations, Prachanda advocated for a promotion-oriented approach rather than a control-oriented one. “Our financial and monetary policies should be promotion-oriented and not control-oriented. Those policies and regulations should contribute to production and employment promotion,” he stated.
The Prime Minister acknowledged the government’s continuous efforts to improve the country’s economic indicators, both internal and external. He cited the recently concluded third investment conference as a crucial step in addressing investment-related challenges and promoting domestic and foreign investment in Nepal.
“This will play an important role in encouraging and promoting internal and external investment by addressing the problems seen in the areas of investment,” Prachanda said, expressing confidence that Nepal’s political stability, investor interest, and shared vision would soon establish the nation as an attractive investment destination.
With Laxmi Motors’ Hyundai assembly plant serving as a significant milestone, Nepal’s automotive sector is poised for growth, fostering import substitution, job creation, and contributing to the country’s economic development.
