This is the fifth CKD plant that the company has set up after the ones in Thailand, Brazil, Argentina and Colombia.
Royal Enfield has set up its fifth CKD assembly unit in Nepal, in collaboration with the Triveni Group. Located in Birgunj, the new facility is Royal Enfield’s fifth CKD assembly unit in the world, in addition to its 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 spread out over 1 lakh square feet 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.
B Govindarajan, CEO, Royal Enfield, said, “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 to 65 percent of that being motorcycles with engines bigger than 150cc. With the market expected to grow at 10 to 15 percent in upcoming years, Royal Enfield believes that the trend of premiumisation of motorcycles will only increase and the company’s machines are suited for the rugged terrains of Nepal.
In Kathmandu to inaugurate the CKD unit, as well launch the new motorcycles for 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. The local topography of Nepal provides the ideal setting for our kind of motorcycling. We will expand our retail network from 18 currently, to 35 touchpoints across 30 cities, over the next year.” He was confident that the company would be able to attract new set of consumers and also grow the middleweight segment in Nepal.