Royal Enfield starts Thailand assembly unit, CKD plant

Royal Enfield has commenced operations at its exclusive local assembly unit and CKD facility in Thailand. The company now has three local CKD units overseas - in Argentina and Colombia in Latin America, and in Thailand.

By:Updated: Nov 26, 2021 8:44 AM
Royal Enfield Himalayan Expedition

Iconic bike-maker Royal Enfield on Thursday announced the commencement of operations of its exclusive local assembly unit and CKD (completely knocked-down) facility in Thailand.

Set up in partnership with GPX, the facility will be a significant boost to the company’s business in Southeast Asia, and further reiterates its commitment to the Asia-Pacific region, said a company release.

With this, the company now has three local CKD units overseas — in Argentina and Colombia in Latin America, and in Thailand — in addition to the three state-of-the-art manufacturing facilities in Chennai.

In addition to catering to consumers in Thailand, this assembly unit will act as a distribution hub for all other countries in Southeast Asia, including Indonesia and Vietnam, thereby offering significant advantage and growth opportunities for Royal Enfield. To begin with, the facility will start local assembly of the Himalayan, Interceptor 650 and Continental GT 650 models, starting this month.

B Govindarajan, executive director, Royal Enfield, said, “Royal Enfield has been working extensively to grow and expand the middleweight motorcycling segment globally. With a strategic view to grow the business and cater to increasing demand, we have been pursuing our plans to set up local assembly units in priority markets beginning with Argentina in 2020 and then Colombia earlier this year.”

Thailand has been a critical market for Royal Enfield since the brand’s market foray in 2015. Having made significant strides in the country and the APAC region, Royal Enfield is now among the top five players in the premium, mid-size motorcycle segment in markets such as Thailand, Australia, New Zealand and Korea. With a burgeoning consumer base in the Asia-Pacific, and a significant retail network in the region, the new local assembly unit will be a critical boost for business growth in Southeast Asia.

Royal Enfield’s premium line-up includes the new Classic 350, the Meteor 350 cruiser, Interceptor 650 and Continental GT 650 twins, the Himalayan adventure tourer, and the iconic Bullet 350 and Classic 350 singles.

A division of Eicher Motors, Royal Enfield operates through 1033 large format dealerships and 1,038 studio stores in all major cities and towns in India, and exports to over 60 countries around the globe.

The company’s two production facilities are located at Oragadam and Vallam Vadagal, near Chennai. Royal Enfield recently invested in two world-class technical centres, in Bruntingthorpe, UK, and Chennai, and in 2020 opened its first assembly unit outside India, in Buenos Aires, Argentina. With more than 17% growth year-on-year for the last five years and sales in international markets up 96% in 2019-20, Royal Enfield is the leader in the global mid-size motorcycle market.

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