Global mid-size motorcycle leader, Royal Enfield, has announced the commencement of operations at its exclusive Local Assembly Unit and CKD facility in Nepal. In partnership with the Triveni Group, this move is set to significantly enhance the company’s business in the SAARC region. The new assembly unit, located in Birgunj, marks Royal Enfield’s fifth CKD assembly facility in the world, further solidifying its presence in addition to its manufacturing facilities in India.
B Govindarajan, CEO of Royal Enfield, emphasized the strategic importance of this expansion: “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.”
With the motorcycle market in Nepal experiencing a confident rebound, Royal Enfield sees substantial growth potential. The pre-pandemic motorcycle segment in Nepal was nearly 1.7 million units per year, with a significant portion sold in the >150cc premium segment. With an expected market growth of 10%-15% in the coming years, Royal Enfield aims to tap into the trend of premiumization and cater to riders’ preferences for resilient and high-torque motorcycles suited for Nepal’s rugged terrains.
Yadvinder Singh Guleria, Chief Commercial Officer of Royal Enfield, underlined the significance of the CKD operations in Birgunj: “This is a testament to our commitment to the market potential and the growing motorcycling community. The local topography of Nepal provides the ideal setting for our kind of motorcycling. Further to our commitment to growing the market in the country, we will expand our retail network from 18 currently, to 35 touchpoints across 30 cities, over the next year.”
The state-of-the-art assembly unit in Birgunj, spanning over 1 lakh sq ft, will have an assembly capacity of 20,000 units per year. Initially, it will be engaged in the local assembly of the new Classic 350 and the Scram 411 models. This move not only reinforces Royal Enfield’s commitment to Nepal but also reflects its dedication to offering a diverse range of high-quality motorcycles to meet the preferences of local riders.
With its extensive history and a reputation for crafting reliable and resilient motorcycles, Royal Enfield’s expansion in Nepal is poised to resonate with the country’s motorcycling enthusiasts and contribute to the growth of the two-wheeler market in the region.