Royal Enfield Expands Operations in Nepal with New CKD Facility
By Carandbike Team
04-Jun-23 01:45 PM IST
- Royal Enfield to focus on the middleweight motorcycle segment.
- Nepal's annual volume is nearly 1.7 million units, with the premium segment accounting for 60%-65% of sales.
- The facility, located in Birgunj, will assemble 20,000 units annually, focusing initially on the Classic 350 and Scram 411 models.
Royal Enfield has commenced operations at its Local Assembly Unit and Completely Knocked Down (CKD) facility based in Nepal. The Indian motorcycle manufacturer has collaborated with the Triveni Group, and the brand states that this development will boost business in the SAARC region and underscores RE’s commitment to Nepal. The new facility, located in Birgunj, is Royal Enfield's fifth CKD assembly unit worldwide, the other four facilities are in Brazil, Thailand, Colombia, and Argentina. These additions complement the brand's manufacturing and ancillary facilities based in Tamil Nadu, India.
Royal Enfield states that they find substantial growth potential in Nepal's motorcycle market. Prior to the pandemic, the country's motorcycle segment reached an annual volume of nearly 1.7 million units, with the premium segment i.e. motorcycles above 150cc, accounting for approximately 60%-65% of sales. Anticipating a growth rate of 10%-15% in the coming years, Royal Enfield believes that the trend towards premiumization of motorcycles will continue in the future, one of the reasons being that the royal enfield motorcycles are well-suited for Nepal's diverse riding styles and rugged terrains.
The facility, located in Birgunj, will assemble 20,000 units annually, focusing initially on the Classic 350 and Scram 411 models
B Govindarajan, CEO Royal Enfield, said, “It has been our endeavour to grow and
expand the middleweight motorcycle segment globally, and over the last few years, we have seen immense success in our international operations. Royal Enfield now ranks among the top mid-segment motorcycle brands in markets such as the UK, Korea, Australia-New Zealand, among others. Our strategic intent to be closer to global markets has worked really well, as we have successfully set up four CKD facilities across APAC and Latin America, and we have recently also commenced our direct to market strategy in the UK. This new CKD facility in Nepal is in line with our ambitious global expansion
strategy of investing in markets with huge potential to grow. We are committed to bringing our globally awarded line-up of gorgeous motorcycles, and pure motorcycling experiences to passionate riders in Nepal”
The assembly unit is spread across 1 lakh sq ft of land, and the factory in Birgunj boasts a capacity to assemble 20,000 units annually, catering to the rising demand in the country. Initially, the facility will focus on the local assembly of the new Classic 350 and the Scram 411 models. Through this establishment, Royal Enfield aims to streamline the motorcycle purchasing process in Nepal and foster the growth of the middleweight segment in the country.
By - Ronit Agarwal
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