Royal Enfield, the renowned motorcycle manufacturer, has recently opened its fifth assembly facility in the world. However, fans of Indonesian classic-style motorbikes may be disappointed to learn that the new facility is not located in Indonesia.
The company announced that the fifth Royal Enfield CKD assembly facility is situated in Birgunj, Nepal. This facility joins the existing assembly facilities in Brazil, Thailand, Colombia, and Argentina. It is important to note that these five facilities do not include the production and support facilities in Tamil Nadu, India.
B Govindarajan, the CEO of Royal Enfield, stated that the establishment of the newest facility in Nepal aligns with the company’s ambitious global expansion strategy. He emphasized their commitment to bringing a range of high-performing motorcycles and a pure motorcycling experience to passionate riders in Nepal.
The assembly facility in Birgunj has an impressive capacity of 20,000 units per annum. It is a state-of-the-art and modern facility covering an area of 1 lac m². Initially, the facility will focus on locally assembling the New Classic 350 and Scram 411 motorbikes.
Yadvinder Singh Guleria, the Chief Commercial Officer of Royal Enfield, highlighted the potential of the Nepal market. With sales reaching 1.7 million units per year, the majority of which are premium segment motorbikes above 150 cc, the market presents significant opportunities for the company.
Guleria also mentioned that the local topography in Nepal provides ideal conditions for the Royal Enfield way of riding motorcycles. In addition to developing the market in Nepal, the company plans to expand its retail network to 35 points in 30 cities over the next year. They are confident in attracting new customers and tapping into the developing mid-range motorcycle segment in Nepal.
While Indonesian fans of classic-style motorbikes may be disappointed by the location of the new assembly facility, Royal Enfield’s expansion into Nepal demonstrates their commitment to exploring markets with great growth potential. The company’s focus on delivering high-quality motorcycles and a unique motorcycling experience remains unwavering.
Watch Video “Fierce! Royal Enfield Scram 411 Mejeng ‘Sultan’ Motorbike at IIMS 2023”
(admin/rgr)
How does Royal Enfield’s opening of a new assembly facility in Nepal reflect the company’s global expansion strategy?
Royal Enfield, the renowned motorcycle manufacturer, has recently made headlines with the opening of its fifth assembly facility in Birgunj, Nepal. While some fans of Indonesian classic-style motorbikes may be disappointed it’s not in Indonesia, this move is indicative of the company’s ambitious global expansion strategy.
The new assembly facility in Birgunj boasts an impressive capacity of 20,000 units per annum. Covering an area of 1 lac m², it is a state-of-the-art and modern facility. Initially, the focus will be on locally assembling the New Classic 350 and Scram 411 motorbikes.
With an eye on the growing market potential in Nepal, Royal Enfield aims to tap into the sales of premium segment motorbikes above 150 cc. The company’s Chief Commercial Officer, Yadvinder Singh Guleria, highlighted the ideal conditions that the local topography in Nepal provides for the Royal Enfield riding experience.
In addition to expanding its retail network in Nepal to 35 points across 30 cities, Royal Enfield is confident in attracting new customers and capitalizing on the developing mid-range motorcycle segment in the country.
While some Indonesian fans may have their disappointment, Royal Enfield’s move into Nepal underscores its commitment to exploring markets with substantial growth potential. The company’s dedication to providing high-quality motorcycles and an exceptional motorcycling experience remains unwavering.
