Country´s first automobile manufacturer Hulas Motors on Sunday announced that it was shutting down production of Hulas brand of four-wheelers with immediate effect. Organizing a press meet on Sunday, officials of Hulas Motors said the government decision to enforce Euro-3 standard compelled them to take the decision.
“We had asked the government to allow us one more year to comply with the new standard. But the government turned deaf ear to our request, leaving us with no option but to stop production,” Surendra Golchha, managing director of Hulas Motors, said. Golchha claimed that his company was manufacturing vehicles that suit Nepali topography and selling them at much lower price compared to imported vehicles.
Former Prime Minister Baburam Bhattarai had used Mustang Max SUV manufactured by the company as his car during his term at the office to promote Nepali production. “Former Prime Minister Bhattarai´s initiative to promote Nepali production by using our vehicle helped us a lot. However, the government´s indifference toward our request forced us to take this difficult decision,” he said. According to company officials, more than 1,400 Hulas vehicles are in operation in different parts of the country.
Golchha said the company would continue to provide after sales service to those vehicles by producing spare parts despite closure of the plant. Prafulla Chandra Das, general manager of Hulas Motors, said the company had been following ´Euro 1l standard. Saying that the two-year time provided by the government to follow ´Euro 3´ standard was insufficient, Das lamented the government´s decision to not extend deadline.
“We need to conduct research before adopting the new standard. The timeframe given by the government was insufficient,” Das said. Though Hulas Motors has decided to stop production of diesel vehicles, it will continue to produce electric rickshaws