As of now, Golchha Group's Hulas Auto Craft has been producing Bajaj motorcycles in Nepal through its assembly plant in Nawalparasi. Similarly, Shankar Group has also started assembling TVS motorcycles in Nepal from 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. It has proposed to invest Rs 1.51 billion for the assembly plant to assemble 31,000 motorcycles and 19,000 scooters annually. 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. The assembly plant will be set up in Ward No 4 of Rohini Rural Municipality, Rupandehi. Syakar is said to be investing Rs 600 million in Himal Moto to assemble 25,000 motorcycles and 75,000 scooters annually. 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. NGM has planned to establish a plant in Ward No 32 of Birgunj Metropolitan City. The company has proposed to invest Rs 330 million in the assembly plant which will produce 45,000 motorcycles annually. Not to be left behind, Vishal Group has entered 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. The group is investing Rs 464.59 million to set up an assembly plant to produce 30,000 motorcycles and scooters and 5,000 three-wheeled auto rickshaws annually. The assembly plant will be set up in Bindabasini Rural Municipality of Parsa district.
