Royal Enfield recently announced commencement of operations of its 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 manufacturing and ancillary facilities located in Tamil Nadu, India.
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 well, as we have successfully set up four CKD facilities across APAC and Latin America and recently 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.
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.
