Royal Enfield has announced the commencement of its exclusive Local Assembly Unit and Completely Knocked Down (CKD) facility in Nepal. In collaboration with the Triveni Group, this development significantly enhances Royal Enfield’s business in the SAARC region and reaffirms its commitment to Nepal. The facility is located in Birgunj and marks Royal Enfield’s fifth CKD assembly unit worldwide, following Brazil, Thailand, Colombia, and Argentina. This is in addition to the company’s advanced manufacturing and ancillary facilities in Tamil Nadu, India.
CEO of Royal Enfield, B Govindarajan, expressed his congratulations on the inauguration of the Nepal CKD unit and emphasized the company’s global ambitions. He highlighted their success in expanding the mid-segment motorcycle market internationally, with Royal Enfield now ranking among the top brands in markets like the UK, Korea, and Australia-New Zealand. The establishment of CKD facilities in Asia-Pacific and Latin America, along with their direct-to-market strategy in the UK, has proven effective. The new CKD facility in Nepal aligns with their global expansion strategy, focusing on markets with significant growth potential. Royal Enfield aims to bring their acclaimed lineup of motorcycles and pure motorcycling experiences to passionate riders in Nepal.
The motorcycle market in Nepal is experiencing a confident rebound, and Royal Enfield sees immense potential for substantial growth. Prior to the pandemic, the motorcycle segment in Nepal reached nearly 1.7 million units per year, with 60%-65% of that being motorcycles sold in the premium segment (>150cc). With an expected 10%-15% market growth in the coming years, Royal Enfield believes the trend of premiumization will continue, and their resilient, reliable, and high-torque machines are well-suited for Nepal’s riding styles and rugged terrains.
Yadvinder Singh Guleria, Chief Commercial Officer of Royal Enfield, emphasized the importance of this milestone in Nepal. He mentioned the company’s commitment to the market’s potential and the growing motorcycling community. The local topography of Nepal perfectly complements Royal Enfield’s style of motorcycling. As part of their dedication to growing the market, they plan to expand their retail network from 18 to 35 touchpoints across 30 cities within the next year. They are confident that they will attract new consumers and drive growth in the middleweight segment in Nepal.
The local assembly unit in Birgunj boasts a modern facility spread over 100,000 square feet and has an assembly capacity of 20,000 units per year. Initially, the facility will focus on the local assembly of the new Classic 350 and the Scram 411. With this setup, Royal Enfield aims to provide a seamless purchase process for its motorcycles in Nepal and foster the growth of the middleweight segment in the country.