One of the leading motorcycle manufacturers, Royal Enfield has established an exclusive Local Assembly Unit and CKD facility in Nepal. The inauguration of the new plant will expand the presence of the brand in the SAARC region. In collaboration with the renowned Triveni Group, this milestone reinforces the brand’s dedication towards the Nepalese market.
About the newly established Assembly plant
Royal Enfield has established a new CKD Local Assembly Unit in collaboration with Triveni Group. Moreover, the brand has commenced the assembly operations in this plant expanding its presence in the SAARC region. The newly established brand’s 5th CKD local assembly unit is located in Birgunj, Nepal. However, the other CKD facilities are located in Brazil, Thailand, Colombia and Argentina. And the ancillary facilities of the brand are located in Tamil Nadu, India.
The newly established CKD Local Assembly Unit in Nepal has an enormous annual capacity of 20,000 units. This modern facility has over an expansive 1,00,000 sq. ft. of area. Moreover, the facility is designed to fulfil the rising demand for motorcycles in the country. Initially, the assembly unit will focus on the local assembly of the new Classic 350 and the Scram 411 models. Royal Enfield aims to streamline the motorcycle purchasing process and grow sales of the middleweight segment.
Royal Enfield analysis of the Nepal market
The motorcycle market in Nepal is growing, and Royal Enfield is optimistic about its potential for significant growth. Prior to the pandemic, Nepal’s motorcycle segment reached an impressive annual figure of around 1.7 million units. While the majority of 60% to 65% belongs to the premium segment of motorcycles above 150cc. As the market will expand by 15% in future, the brand expects a surge in demand for premium motorcycles. Royal Enfield bikes are robust and dependable machines that are ideally suited for the riding styles and terrains of Nepal.
Official Statement
Congratulating the team on the inauguration of the Nepal CKD unit and speaking about Royal Enfield’s global ambitions, B Govindarajan, CEO, of 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 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.”
Here in Kathmandu to inaugurate the CKD unit, as well as launch the new motorcycles for the 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 grow the middle weight segment in Nepal.”