Royal Enfield set up Nepal operation
Royal Enfield has announced the commencement of operations of its exclusive Local Assembly Unit and CKD facility in Nepal.
Set up in collaboration with the Triveni Group, this is a significant boost to the company’s business in the SAARC region, and further reiterates Royal Enfield’s commitment to Nepal. Located in Birgunj, the new facility is the Royal Enfield’s fifth CKD assembly unit in the world – after Brazil, Thailand, Colombia and Argentina – in addition to its manufacturing and ancillary facilities located in Tamil Nadu, India.
Congratulating the team on the inauguration of the Nepal CKD unit and speaking about Royal Enfield’s global ambitions, B Govindarajan, CEO, Royal Enfield, said “It has been our endeavour to grow and expand the middleweight motorcycle segment globally, and over the last few years, we have seen immense success in our international operations. Royal Enfield now ranks among the top mid-segment motorcycle brands in markets such as the UK, Korea, Australia-New Zealand, among others. Our strategic intent to be closer to global markets has worked really well, as we have successfully set up four CKD facilities across APAC and Latin America, and we have recently also commenced our direct to market strategy in the UK. 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%-65% of that being motorcycles sold in the >150cc premium segment. With the market expected to grow at 10%-15% in upcoming years, Royal Enfield believes that trend will only increase and Royal Enfield aims to capitalise on it.
With an assembly capacity of 20,000 units per year the facility will initially engage in local assembly of the new Classic 350 and the Scram 411.
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