Hero MotoCorp has announced its plans to establish an assembly facility in Nepal through a collaboration with CG Motors, the newly appointed distributor in the region. The state-of-the-art greenfield assembly plant, situated in the Nawalpur district, will have a production capacity of 75,000 units per year, according to the statement from India’s leading two-wheeler manufacturer. Operations are scheduled to commence in March 2024.

In the past, Hero MotoCorp’s distribution in Nepal was handled by NGM, operating under the Jyoti Group, with both Hero and the Jyoti Group having a longstanding business relationship spanning over 35 years. However, when Hero decided not to renew NGM’s dealership due to reported low sales figures, the matter escalated into a legal dispute that reached the court.

Amidst this situation, several business entities sought to secure the Hero dealership, but ultimately, CG Motors emerged successful in obtaining the dealership rights. This marked a significant shift in the distribution landscape for Hero MotoCorp in Nepal, with CG Motors stepping in as the new distributor.

Commenting on the collaboration, Sanjay Bhan, head – of global business at Hero MotoCorp, said, “We are excited to partner with the Chaudhary Group in Nepal. With their vast expertise and diversified business knowledge, Chaudhary Group will provide an enormous fillip to our operations here. Nepal is an extremely important market for us and it is our continuous endeavour to provide the best products, services and experiences to our customers here.”

“In the near future, we plan to further strengthen our operations across the country and introduce a slew of new products that will excite the market. We are confident of expanding our presence in the market with our new partner and look forward to solidifying this collaboration,” he added.

Nirvana Chaudhary, Managing Director, Chaudhary Group said, “We are thrilled with our collaboration with Hero MotoCorp, who are globally recognised as the leading manufacturer of motorcycles and scooters. This partnership marks CG Motors’ ambitious re-entry into the automotive market, leveraging Hero MotoCorp’s renowned products and services.”

“Our deep understanding of the local market dynamics will be instrumental in driving business growth. We look forward to the establishment of a cutting-edge assembly unit, confident that this alliance will significantly strengthen and redefine the brand’s presence in the country,” Chaudhary added.

At present, Hero MotoCorp markets a variety of motorcycles in Nepal, including the Xpulse Twins (Xpulse 200 and Xpulse 200T), Xtreme range (Xtreme 160R and Xtreme 200R), Splendor range (Super Splendor and Splendor+), Glamour, and HF Deluxe. Additionally, the company offers a selection of scooters, including Destini 125, Maestro Edge, and Pleasure+.

CG Motors is likely to initiate the assembly of the XPulse 200 4V, Hero Xoom scooter, and Splendor+ Xtec, marking them as the first models to undergo assembly in the country.