Royal Enfield expands global footprint with a new CKD assembly plant in Brazil
- The new Royal Enfield CKD assembly plant in Brazil will have a production capacity of 15,000 units per year and shows the importance of the LatAm market for the manufacturer.
Royal Enfield has announced commencement of operations at its new CKD assembly facility located in Brazil, expanding the brand’s global footprint. This is the Chennai-based motorcycle giant’s fourth Completely Knocked Down (CKD) assembly plant globally with other units located in Thailand, Colombia and Argentina respectively. The new facility marks a significant step in Royal Enfield’s plans for the Latin America region with a slew of new launches planned in the coming months.
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Speaking at the inauguration of the new facility, Royal Enfield CEO, B Govindarajan, said, “Royal Enfield has been working extensively to grow the middleweight motorcycling segment globally. With markets like the Americas region, Europe and the Asia-Pacific growing significantly, it has been our strategic intent to be closer to these markets and grow the business. We commenced on this journey a couple of years ago and have set up strategic assembly facilities in Thailand, and in Argentina and Colombia in LatAm. Brazil has been a very strong market for Royal Enfield, and is soon poised to be the single largest market for us outside of India. We have seen growth of more than 100 per cent since 2019 here in Brazil. We are very happy to launch our fourth CKD facility globally here in Brazil and this is testament to our commitment to the region and the market potential, and to our growing community of riding enthusiasts in the market. We are confident that this facility will help us grow the mid-segment market here in Brazil while enabling us to efficiently cater to the growing demand"
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The new CKD plant will have an annual production capacity of over 15,000 units and is located in Manaus, capital of Amazonas state in Brazil. The plant will have a local engine assembly for the RE’s complete line-up starting from the Classic 350, Meteor 350, Himalayan and the Interceptor 650 and Continental GT 650 motorcycles. It’s safe to say that there’s ample room for more models to join the portfolio in the future. The new plant promises quicker delivery timelines for the Brazilian market. The bikes will be made in India and shipped out as CKD kits from the manufacturer’s Indian plant in Tamil Nadu.
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Royal Enfield forayed in the Brazilian market in 2017 and has since made great strides in the Americas region since. The company says it is currently one of five top players in the middleweight motorcycle segment (250-750 cc) in markets such as Brazil, Argentina, Colombia, Mexico and North America. The new plant is only expected to fuel the growing demand for Royal Enfield motorcycles in the coming years, while the brand will also expand its sales network in the region.
In related news, Royal Enfield will also re-enter the UK market on its own next year. The company will be going back to its roots with a subsidiary for sales and distribution cutting ties with MotoGB, its current distributor in the market, from May 1, 2023.
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