AutoBiz: RE Expands With New CKD Plant in Thailand

Eicher-owned brand Royal Enfield has set up an all-new CKD manufacturing plant in the country of Thailand One of the most prominent motorcycle makers in the world, Eicher-owned brand Royal Enfield, has set up an all-new manufacturing plant in the country of Thailand. In the new plant, the Indian firm will manufacture local units and completely knocked down (CKD) units to boost its businessin the Southeast region of Asia. To set up the new plant, Royal Enfield collaborated with GPX, a Thai two-wheeler manufacturing company. As of now, the company will only manufacture three motorcycles in the new plant; Continental GT 650, Interceptor 650 and the Himalayan. There are several countries such as Vietnam, Indonesia and more in Southeast Asia, and the company will export its products to those markets. The company entered the Thai market in 2015 and now, in 2021, the establishment of a manufacturing plant shows the company is keen to transform itself into a bigger motorcycle manufacturing brand. Not to overlook, the newly-established manufacturing plant in Thailand is the firm’s third CKD manufacturing plant after the one present in Argentina and the one found in Colombia. Talking about the recent developments, B Govindarajan, the Executive Director of 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.” Govindarajan further said, “Continuing this journey and marking a first for us in the Asia-Pacific region, we are very happy to announce the commencement of operations at the CKD assembly plant in Thailand. A testament to our commitment to the region and the market potential, and to our growing community of riding enthusiasts, this facility will enable us to efficiently cater to the growing demand in this region, and also become the hub for the rest of Southeast Asian markets.”

Last but not the least, apart from establishing new plants in various countries; Royal Enfield is also working on several new products. Recently, the company at the EICMA held in Milan, Italy showcased a concept bobber motorcycle that is likely to be powered by the firm’s existing 650cc, parallel-twin platform.