Royal Enfield has begun operations at its new CKD assembly facility in Brazil, expanding the brand’s global footprint. This is the fourth Completely Knocked Down (CKD) assembly plant in the world for the Chennai-based motorcycle manufacturer, with other units in Thailand, Colombia, and Argentina. The new facility represents a significant step forward in Royal Enfield’s plans for the Latin America region, with several new launches planned in the coming months.
Speaking at the inauguration of the new facility, Royal Enfield CEO, B Govindarajan, said, “Royal Enfield has been working extensively to grow the middleweight motorcycling segment globally. With markets like the Americas region, Europe and the Asia-Pacific growing significantly, it has been our strategic intent to be closer to these markets and grow the business. We commenced on this journey a couple of years ago and have set up strategic assembly facilities in Thailand, and in Argentina and Colombia in LatAm. Brazil has been a very strong market for Royal Enfield, and is soon poised to be the single largest market for us outside of India. We have seen growth of more than 100 per cent since 2019 here in Brazil. We are very happy to launch our fourth CKD facility globally here in Brazil and this is testament to our commitment to the region and the market potential, and to our growing community of riding enthusiasts in the market. We are confident that this facility will help us grow the mid-segment market here in Brazil while enabling us to efficiently cater to the growing demand”
Read More: Royal Enfield Super Meteor 650 Unveiled
The new CKD plant in Manaus, Brazil’s Amazonas state capital, will have an annual production capacity of over 15,000 units. The plant will have a local engine assembly line for the entire RE lineup, including the Classic 350, Meteor 350, Himalayan, Interceptor 650, and Continental GT 650 motorcycles. It’s safe to say that more models will be added to the portfolio in the future. The new plant promises faster delivery to the Brazilian market. The bikes will be manufactured in India and shipped as CKD kits from the manufacturer’s Tamil Nadu plant.
Royal Enfield entered the Brazilian market in 2017 and has since made significant progress in the Americas region. According to the company, it is currently one of the top five middleweight motorcycle segment (250-750 cc) players in markets such as Brazil, Argentina, Colombia, Mexico, and North America. The new plant will only serve to fuel the growing demand for Royal Enfield motorcycles in the coming years, while the brand will also expand its regional sales network.
Read More: Royal Enfield 650cc Scrambler Spied For The First Time
In related news, Royal Enfield will re-enter the UK market on its own the following year. From May 1, 2023, the company will return to its roots by establishing a subsidiary for sales and distribution, severing ties with MotoGB, its current market distributor.
