Royal Enfield commences fifth international CKD assembly unit in Nepal

Royal Enfield, a global leader in mid-size (250cc-750cc) motorcycle segment, today 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 announcement is a significant boost to the company’s business in the SAARC region.

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 state-of-the-art manufacturing and ancillary facilities located in Tamil Nadu, India.

B Govindarajan, CEO, Royal Enfield, said, “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 the trend of premiumisation of motorcycles will only increase and Royal Enfield’s resilient, reliable and high torque machines will be perfectly suited for riding styles and the rugged terrains of Nepal.

In Kathmandu to inaugurate the CKD unit, as well launch the new motorcycles for Nepal market, Chief Commercial Officer, Royal Enfield - Yadvinder Singh Guleria said “Today marks an important chapter in our journey in the Nepal market as we announce the commencement of our 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.”

He was confident that the company would be able to attract a new set of consumers and also grow the middle weight segment in Nepal.”

With an assembly capacity of 20,000 units per year, the local assembly unit in Birgunj is a state-of-the-art, modern facility spread over 1 lac sq ft that will cater to growing demand in the country. To begin with, the facility will engage in the local assembly of the new Classic 350 and the Scram 411.