Royal Enfield opens CKD assembly plant in Nepal


Royal Enfield has announced the brand’s fifth complete knockdown (CKD) assembly plant outside India, as the company expands its presence in neighboring Nepal. The motorcycle maker has entered into a partnership with Nepal’s Triveni Group aimed at significantly boosting the manufacturer’s prospects in the SAARC region. The new CKD plant is located in Birgunj, Nepal, along with other plants in Brazil, Thailand, Colombia and Argentina.

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Updated on:
June 2, 2023 at 16:31 pm

Royal Enfield CKD assembly plant in Nepal has an annual production capacity of 20,000 units

Royal Enfield will start local assembly operations in Nepal, producing the Classic 350 and Scram 411. Both bikes are produced at the company’s factory in Tamil Nadu, India, and will be exported as kits to adjacent markets. The CKD factory occupies more than 100,000 square feet and has an annual installed capacity of 20,000 units. The company anticipates a huge market potential.

Also read: Royal Enfield up 22% in May 2023; Hunter records highest monthly sales ever

Commenting on the global expansion, B Govindarajan, Chief Executive Officer of Royal Enfield, said: “We have been committed to growing and expanding the middleweight motorcycle market globally and we have had great success with our international business over the past few years. .Royal Enfield is now ranked among the top mid-range motorcycle brands in markets such as the UK, Korea, Australia and New Zealand.Our strategic intent to be closer to the global market is working very well as we have successfully established four CKD facility, and we have also recently started 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 great growth potential. We are committed to building our global reputation The gorgeous collection of motorcycles and pure motorcycle experience brought to passionate riders in Nepal”

Royal Enfield expects sales of premium motorcycles 150 cc and above to grow 10-15% in Nepal over next few years

Royal Enfield expects sales of premium motorcycles 150 cc and above to grow 10-15% in Nepal over next few years

Launching the Classic 350 and Scram 411 in Nepal, Royal Enfield Chief Commercial Officer Yadvinder Singh Guleria said: “Today marks an important chapter in our journey to the Nepalese market as we announce the commencement of our CKD operations in Birgunj. This is a testament to the Our commitment to the market potential and growing motorcycle community. The local terrain in Nepal provides an ideal environment for our type of motorsport. To further our commitment to growing the market in the country, we will be moving our The retail network has expanded from the current 18 to 35 touchpoints in 30 cities. We believe that we will be able to attract a new class of consumers and develop a middle-weight market in Nepal.”

Also read: Royal Enfield Himalayan 450 undergoes field testing again ahead of launch

The pre-pandemic motorcycle market in Nepal was 1.7 million units per year. More than 60% of two-wheeler sales are in the 150 cc and above segment and Royal Enfield sees this segment poised to grow by 10-15% over the next few years. The ruggedness of RE’s products further bodes well for Nepal’s rugged terrain.

First published date: June 2, 2023 at 16:29 PM CST

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