The new facility is Royal Enfield’s fifth CKD assembly unit in the world after Brazil, Thailand, Colombia, and Argentina. “This new CKD facility in Nepal is in line with our ambitious global expansion strategy of investing in markets with huge potential to grow,” said B Govindarajan, CEO of Royal Enfield.
The motorcycle market in Nepal is on a confident rebound journey, and Royal Enfield sees huge potential for the market to grow substantially, the company said in a press statement. With the market expected to grow at 10-15 percent in upcoming years, the company believes that the trend of premiumization of motorcycles will only increase in the country. The local partner of Royal Enfield in Nepal is Triveni Group. The group's subsidiary company Alfa Automotive Pvt. Ltd. is the official dealer of Royal Enfield in Nepal. Triveni had registered a company named TG Auto Group Pvt Ltd for motorcycle assembly at the Department of Industry. As of now, Golchha Group's Hulas Auto Craft has been producing Bajaj motorcycles in Nepal at its assembly plant in Nawalparasi. Similarly, Shankar Group has also started assembling TVS motorcycles in Nepal at its Simara-based plant. After the government incentivized the establishment of automobile assembly plants in the country, Nepali business houses having authorized dealerships of international motorcycle brands have shown their interest in setting up such assembly plants in Nepal. A year ago, the government led by the then Prime Minister Sher Bahadur Deuba through a substitution bill announced a 50 percent excise duty exemption on two-wheelers, four-wheelers, and assembly kits imported by companies to be assembled in Nepal. The government, however, increased the excise duty on 125cc to 250cc two-wheelers by 10 percent while those with engine capacity between 500 cc and 800 cc by 20 percent. This has forced major automobile dealers to set up assembly plants in the country. The authorized dealers of Yamaha, Hero, Honda, and Suzuki motorcycles have also already started the process to set up an assembly plant. MAW Enterprises, the authorized dealer of Yamaha motorcycles in Nepal, has registered MAW Auto Industry to assemble Yamaha two-wheelers. MAW has planned to set up a plant in Tankisinwari, Morang for the purpose. Meanwhile, Syakar Trading, the authorized distributor of the leading Indian motorcycle brand Honda has started the process to set up assembly plants in Nepal. Syakar has registered Himal Moto Pvt. Ltd. to assemble Honda two-wheelers in Nepal. Likewise, NGM Pvt. Ltd., the authorized distributor of Hero two-wheelers in Nepal, has registered NGM Engineering and Sales Pvt. Ltd. to assemble Hero motorcycles and scooters. Not to be left behind in this race, Vishal Group is also stepping into the automobile assembly business. The group, which is the official dealer of Suzuki motorcycles in Nepal, has recently registered Global Automobiles Pvt Ltd for the assembly of motorcycles, scooters, and three-wheelers.
