Royal Enfield has started its CKD operations in Nepal. The company has collaborated with the Triveni Group to assemble motorcycles at the newly constructed Birgunj factory.
The new CKD facility is spread over 1 lakh sq.ft., with an installed annual capacity of 20,000 units. The bikemaker will assemble the Classic 350 and Scram 411 at its Nepal facility.
Nepal
Royal Enfield sees substantial growth potential in Nepal’s motorcycle market, which is expected to grow 10%-15% in the coming years. Around 1.7 million motorcycles were sold in the country before the pandemic, with motorcycles above 150cc accounting for about 60%-65% of the sales.
The new CKD facility in Nepal is the fifth such factory outside India. Royal Enfield also operates assembly units in Brazil, Thailand, Colombia and Argentina.
Here are some of the reasons why Royal Enfield is expanding its operations in Nepal:
- Nepal has a large and growing motorcycle market.
- The government of Nepal is supportive of the motorcycle industry.
- The cost of doing business in Nepal is relatively low.
- The labour force in Nepal is skilled and available at a competitive price.
Conclusion
Royal Enfield’s expansion into Nepal is a sign of the company’s confidence in the future of the motorcycle market in the country. The company is well-positioned to capitalize on the market’s growth potential and become a leading player in the Nepalese motorcycle industry.
About Royal Enfield
Royal Enfield is an Indian multinational motorcycle manufacturing company headquartered in Chennai. The Royal Enfield brand, including its original English heritage, is the oldest global motorcycle brand in continuous production.
The company operates manufacturing plants in Chennai, India; Oragadam, India; Vallam, Tamil Nadu, India; and Birgunj, Nepal. Royal Enfield motorcycles are sold in more than 50 countries worldwide.
1901
The first Royal Enfield motorcycle was built in 1901. The company’s most iconic model is the Bullet, which has been in continuous production since 1932. Royal Enfield motorcycles are known for their classic styling, simple engineering, and durability. They are popular among riders who enjoy long-distance touring, off-road riding, and customizing motorcycles.
In recent years, Royal Enfield has experienced rapid growth. In 2021 the company sold over 846,000 motorcycles, a 35% increase from the previous year. Royal Enfield’s growth is driven by strong demand in India and other emerging markets.
RE
The company is also expanding its product range and entering new markets, such as the United States and Europe. Royal Enfield is a major player in the global motorcycle industry. The company is well-positioned for continued growth in the years to come.
Source : RE
