Royal Enfield Started Assembly Operations in Nepal

The new Assembly plant in Nepal will assemble 20,000 bikes per year.

Royal Enfield is stting up a new factory in Nepal to assemble motorcycles specifically for the Nepalese market. Royal Enfield joined the Triveni Group to set up a CKD (Completely Knocked Down) plant in Birgunj, Nepal. This plant will receive parts from Royal Enfield's main factory in Tamil Nadu, India. It will use them to assemble two motorcycles, the Classic 350 and the Scram 411.

Production Capacity and Market Growth of Royal Enfield in Nepal

At present, the Assembly plant can produce 20,000 bikes annually. Nevertheless, the production capacity may escalate in the future based on market performance. Royal Enfield believes a significant market in Nepal for specific motorcycles exists and aims to capture a share. Royal Enfield reports that Nepal's motorcycle market has an estimated annual size of 1.6 million units. Most bikes are in the 150 cc category, nearly 65% and will be expected to grow by 15% in the coming years. 

With its local assembly plant, Royal Enfield intends to establish a strong presence in Nepal and cater to the demand for motorcycles in the country. It is the 5th CKD facility of Royal Enfield outside India. In addition, it has assembly units operating in Brazil, Thailand, Argentina and Colombia.

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