Royal Enfield, a global leader in the mid-size (250cc-750cc) motorcycle segment, has announced the commencement of operations of its exclusive local assembly unit and CKD facility in Nepal.
Located in Birgunj and set up in collaboration with the Triveni Group, the new facility is the bike maker's fifth CKD assembly unit in the world - after Brazil, Thailand, Colombia and Argentina - in addition to its state-of-the-art manufacturing and ancillary facilities located in Tamil Nadu, India.
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 one lakh sq ft that will cater to growing demand in the country. To begin with, the facility will engage in the 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 and to nurturing the growing middleweight segment in the country.
A press release from the company noted that the announcement significantly boosts the company’s business in the SAARC region. The two-wheeler maker believes that 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 the country 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, the company believes that the trend of premiumisation of motorcycles will only increase.
B Govindarajan, CEO, Royal Enfield, noted that the company has endeavoured to grow and expand the middleweight motorcycle segment globally, and over the last few years, it has 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, he said.
“The new CKD facility in Nepal is in line with our ambitious global expansion strategy of investing in markets with huge potential to grow,” he added.
Yadvinder Singh Guleria, Chief Commercial Officer, Royal Enfield, said that as a part of the commitment to growing the market in the country, the company will expand its retail network from 18 to 35 touchpoints across 30 cities over the next year.