Royal Enfield, the iconic motorcycle manufacturer, is set to strengthen its international presence by setting up assembly plants in Nepal and Bangladesh. According to the company’s CEO, B Govindarajan, their focus is on North America, Latin America, the APAC region, Bangladesh, Nepal, and Europe.
Due to legislation, Royal Enfield is unable to export fully-built motorcycles from India to Nepal and Bangladesh. Hence, the need for local assembly plants in these countries. Royal Enfield will work with local partners in Nepal and Bangladesh to set up the assembly plants. Alpha Automotives Pvt. Ltd, the authorized distributor of Royal Enfield in Nepal, will collaborate with the company.
Royal Enfield plans to set up the assembly plant in Nepal within the ongoing fiscal year. However, it may take longer for the Bangladesh assembly plant to come to fruition. The company already has assembly units in Argentina, Colombia, Thailand, and Brazil.
Setting up assembly plants for completely knocked down (CKD) units in international markets is a strategic move to be closer to consumers and instill confidence in the company for the long term. The local assembly unit in Nepal will be set up in collaboration with TG Auto Group in Jeetpur, Bara. The group has already registered with the Department of Industry for assembling Royal Enfield motorcycles in Nepal and proposed to invest Rs 38 crore in the industry to assemble 8,000 motorcycles annually.
The Government of Nepal encourages the vehicle assembly industry, and currently, Bajaj and TVS companies are assembling their two-wheelers in Nepal, with Yamaha commencing trial production of its motorcycles.
Royal Enfield’s international expansion plan aims to increase its market share and brand presence globally. With this move, the company hopes to cement its position in the motorcycle market by offering a local touch to its customers worldwide.
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