Himal Press 
KATHMANDU: CG Motors, the authorized distributor of Hero MotoCorp for Nepal, has begun assembling four Hero two-wheeler models in Nepal.
CG Motors, a subsidiary company of Chaudhary Group (CG), secured the Hero dealership from NGM Pvt Ltd, a Jyoti Group company, in January following an extensive legal dispute between Jyoti Group and NGM Hero.
Hero MotoCorp had long been considering changing its authorized distributor in Nepal, especially after Nepali corporate houses, eyeing the Hero dealership, began submitting business plans for Hero’s expansion in a market where its market share was gradually declining.
The latest agreement between Hero and NGM, which was renewed for two years in April 2022, expired in March. Although Hero unilaterally terminated the agreement in February 2023, the decision was challenged in a Nepali court which ordered the Indian two-wheelers maker not to terminate the agreement. The company complied with the court’s order and continued its partnership with NGM until March. After the agreement expired, the company announced CG Motors as its new partner in Nepal.
Meanwhile, while these developments unfolded, CG, confident in securing the dealership, was building an assembly plant in Nepal.
Sources say many corporate houses, including CG Motors, tried to take advantage of the deteriorating relationship between Hero MotoCorp management and Jyoti Group. In the past, another company would only step in as an alternative if one company failed to operate properly. The unhealthy competition of poaching an already operating brand has become a subject of discussion within the Nepali automobile industry. Such unhealthy competition among corporates does not convey a positive message to foreign investors.
Many argue that Jyoti Group lost the Hero brand due to the ongoing dispute between the Jyoti brothers over the sharing of their ancestral property. The elder brother, Padma Jyoti, represents Honda in Nepal, while the younger brother, Rup, had been distributing Hero two-wheelers in the Nepali market since the Hero Group bought out Honda’s share in Hero Honda in 2011.
Initially, Eicher was represented by Aamir Rana and Prawal Rana. When they could not continue, Anand Batas was brought into the company. Batas eventually ousted Aamir and Prawal. The two, who introduced the Eicher brand to Nepal, were removed from the company. There were also unhealthy competitions among Nepali corporates to secure dealerships of brands like Nissan and Royal Enfield.
When the Chaudhary brothers divided their parental business among them, the automobile division went to the youngest brother, Arun. He has been representing a few automobile brands in Nepal, including Suzuki Motors. Now, the elder brother has also entered the business. Initially, he secured dealerships for a few electric vehicles, including the Chinese EV brand Neta, and now has ventured into the internal combustion engine (ICE) market with Hero. Binod’s eldest son, Nirvana, oversees the automobile business.
People associated with Jyoti Group term the entire Hero saga a result of unhealthy competition among corporates, the group has not officially disclosed its stance.
Hero MotoCorp and CG Motors have announced plans to assemble four models – Xpulse 200 4V, Super Splendor, and Splendor Plus motorcycles, and Xoom 110 scooters – in the new plant at Nawalpur. According to the company, the plant has the capacity to produce 75,000 two-wheelers annually.
“This is an exciting development for us, CG Motors, and for Nepal. The state-of-the-art assembly unit will ensure that our world-class products are now manufactured in Nepal and available to customers across the country,” said Sanjay Bhan, Hero MotoCorp Chief Business Officer – Global Business Unit. “The rapid expansion of the sales and service network will enable us to solidify the market with our world-class products and services.”
Similarly, Nirvana Chaudhary, Managing Director of Chaudhary Group, expressed that Hero MotoCorp’s world-class expertise in manufacturing and business processes will be highly beneficial for them to scale up operations. “We look forward to building a robust market presence across the country,” said Chaudhary.
