Royal Enfield Continues to Expand Global Presence With the Commencement of its Fifth International CKD Assembly Unit
● Royal Enfield growing and strengthening its presence outside India with the launch of its 5th global CKD assembly unit in 3 years
● The Fifth CKD facility outside India is to be located in Nepal and is expected to boost the burgeoning demand for premium middleweight motorcycles in the market
● With an annual capacity of 20,000 units, the CKD unit will begin operations with local assembly of the new Classic 350 and the SCRAM 411 for Nepal
Kathmandu, Nepal – Royal Enfield, a global leader in mid-size (250cc-750cc) motorcycle segment, today announced the commencement of operations of its exclusive Local Assembly Unit and CKD facility in Nepal. Set up in collaboration with the Triveni Group, this announcement is a significant boost to the company’s business in the SAARC region and further reiterates Royal Enfield’s commitment to Nepal. Located in Birgunj, the new facility is the Royal Enfield’s fifth CKD assembly unit in the world – after Brazil, Thailand, Colombia and Argentina – in addition to its state-of-the-art manufacturing and ancillary facilities located in Tamil Nadu, India.
Congratulating the team on the inauguration of the Nepal CKD unit and speaking about Royal Enfield’s global ambitions, 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 motorcycle market in Nepal is on a confident rebound journey, and Royal Enfield sees huge potential for the market to grow substantially. Pre-pandemic the motorcycle segment in Nepal was nearly 1.7 million units per year, with almost 60%-65% of that being motorcycles sold in the >150cc premium segment. With the market expected to grow at 10%-15% in upcoming years, Royal Enfield believes that the trend of premiumization of motorcycles will only increase and Royal Enfield’s resilient, reliable and high torque machines will be perfectly suited for riding styles and the rugged terrains of Nepal.
Here in Kathmandu to inaugurate the CKD unit, as well launch the new motorcycles for Nepal market, Chief Commercial Officer, Royal Enfield – Yadvinder Singh Guleria said “Today marks an important chapter in our journey in the Nepal market as we announce the commencement of our CKD operations in Birgunj. This is a testament to our commitment to the market potential and the growing motorcycling community. The local topography of Nepal provides the ideal setting for our kind of motorcycling. Further to our commitment of growing the market in the country, we will expand our retail network from 18 currently, to 35 touchpoints across 30 cities, over the next year. We are confident that we will be able to attract a new set of consumers and also grow the middle weight segment in Nepal.”
With an assembly capacity of 20,000 units per year, the local assembly unit in Birgunj is a state-of-the-art, modern facility spread over 1 lac sq ft that will cater to growing demand in the country. To begin with, the facility will engage in local assembly of the new Classic 350 and the Scram 411. With this setup, Royal Enfield is committed to a seamless purchase process for its motorcycles in Nepal as well as to nurture the growing middleweight segment in the country.
About Royal Enfield:
The oldest motorcycle brand in continuous production, Royal Enfield has created beautifully crafted motorcycles since 1901. From its British roots, a manufacturing plant was established in Madras in 1955, a foothold from which Royal Enfield spearheaded the growth of India’s mid-sized two-wheeler segment. Royal Enfields are engaging, uncomplicated, accessible, and fun to ride; a vehicle for exploration and self-expression. It’s an approach the brand calls Pure Motorcycling.
Royal Enfield’s premium line-up includes the stylish Hunter 350, the timeless Classic 350, the Meteor 350 cruiser, the 650 parallel twin motorcycles – New Super Meteor 650, Interceptor 650 and Continental GT 650. The adventure motorcycles – Himalayan adventure tourer and the Scram 411 ADV Crossover, and the iconic Bullet 350. Riders and a passionate community are fostered with a rich profusion of events at a local, regional and international level. Most notable are Rider Mania, an annual gathering of thousands of Royal Enfield enthusiasts in Goa, and Himalayan Odyssey, a yearly pilgrimage over some of the toughest terrain and highest mountain passes.
A division of Eicher Motors Limited, Royal Enfield operates through more than 2050 stores across all major cities and towns in India and through nearly 1150+ touchpoints in more than 60 countries around the globe. Royal Enfield also has two world-class technical centres, in Bruntingthorpe, UK, and in Chennai, India. The company’s two state-of-the-art production facilities are located at Oragadam and Vallam Vadagal, near Chennai. Across the world, Royal Enfield has four modern CKD assembly facilities in Brazil, Thailand, Argentina and Colombia. With more than 35% CAGR for the last 5 years, Royal Enfield is the leader in the global mid-size motorcycle market.
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