Royal Enfield strengthens presence in Nepal with new CKD facility and local assembly unit
Indian motorcycle manufacturing company Royal Enfield, which is part of Eicher Motors Limited, has announced the launch of its exclusive Local Assembly Unit and CKD facility in Nepal.
In partnership with the Triveni Group, this initiative marks a significant milestone for Royal Enfield’s business in the SAARC region, underscoring the company’s commitment to Nepal.
Situated in Birgunj, the facility becomes Royal Enfield’s fifth CKD assembly unit globally, complementing its advanced manufacturing and ancillary facilities in Tamil Nadu, India.
The newly established local assembly unit in Birgunj spans an impressive 100,000 square feet and boasts an annual assembly capacity of 20,000 units. It is strategically designed to cater to the growing demand for Royal Enfield motorcycles in Nepal. Initially, the facility will focus on the local assembly of the highly anticipated Classic 350 and Scram 411 models.
With this initiative, Royal Enfield aims to ensure a seamless purchasing experience for its motorcycles in Nepal, while nurturing the expanding middleweight motorcycle segment in the country.
Recognizing the immense potential of the motorcycle market in Nepal, which is currently experiencing a confident rebound, Royal Enfield envisions substantial growth opportunities. Prior to the pandemic, the motorcycle segment in Nepal boasted an annual sales volume of nearly 1.7 million units, with premium motorcycles (>150cc) accounting for 60%-65% of the market.
With an expected growth rate of 10%-15% in the coming years, Royal Enfield anticipates an increasing trend towards premiumization in the motorcycle market. The brand’s resilient, reliable, and high-torque machines are ideally suited for Nepal’s diverse riding styles and rugged terrains.
As part of its growth strategy in the country, Royal Enfield plans to expand its retail network from the current 18 touchpoints to 35 touchpoints across 30 cities within the next year. This expansion aims to attract new consumers while further fueling the growth of the middleweight motorcycle segment in Nepal.