Royal Enfield opens CKD assembly facility in Nepal
Royal Enfield has announced the brand’s fifth Completely Knocked Down (CKD) assembly plant outside of India as the company is set to expand operations in the neighbouring country of Nepal. The motorcycle maker has set up a collaboration with Triveni Group in Nepal, which aims to provide a significant boost to the manufacturer’s prospects in the SAARC region. The new CKD plant is located in Birgunj in Nepal, joining other facilities located in Brazil, Thailand, Colombia and Argentina.
Royal Enfield will commence local assembly operations in Nepal with the Classic 350 and Scram 411. Both bikes are made in India at the company’s facilities in Tamil Nadu and will be exported as kits to the neighbouring market. The CKD plant is spread over one lakh sq. ft. and will have an installed capacity of 20,000 units per year. The company anticipates huge potential from the market.
Speaking on the global expansion, 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"
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Launching the Classic 350 and Scram 411 in Nepal, Yadvinder Singh Guleria - Chief Commercial Officer, Royal Enfield, 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 middleweight segment in Nepal."
The pre-pandemic motorcycle segment in Nepal stood at 1.7 million units annually. Over 60 per cent of the two-wheeler volumes came from the 150 cc and above segment and Royal Enfield believes this space is expected to grow by 10-15 per cent in the coming years. The rugged nature of RE’s offerings further bodes well with the rough terrains of Nepal.