Royal Enfield has announced the inauguration of their new ‘Completely Knocked Down’ or CKD assembly plant in Nepal. The question may arise, what is a ‘completely knocked down’ plant? Let it be known in this context that this is a motorcycle manufacturing plant across parts. Classic 350 maker opens fifth CKD assembly unit outside India They opened the new factory jointly with Triveni Group of Nepal. It is located in Birgunj, Nepal.
Royal Enfield opened their fifth CKD unit
Royal Enfield’s remaining CKD plants are located in Brazil, Thailand, Colombia and Argentina. The company said the Classic 350 and Scram 411 will initially be assembled at the new factory in Nepal. Both models are manufactured at the factory in Tamil Nadu, India. Which they export to neighboring countries as kits.
The CKD plant in Nepal is spread over an area of 1 lakh square feet. It has an annual installed capacity of 20,000 units. In fact, Royal Enfield has opened a new factory with the possibility of increasing demand for two-wheelers in that country’s market. Company CEO B Govindarajan said, “This is our effort to expand the medium weight motorcycle segment globally. We have seen massive success in the international market.” The proliferation of medium weight motorcycles in Nepal will attract more buyers, he added.
Incidentally, during the pre-epidemic period, 17 lakh units of motorcycles were sold in Nepal. Out of which 150 cc model share was 60 percent. Royal Enfield believes that the demand for bikes with engines above 150 cc will increase rapidly. The percentage of which will be 10-15%. The company says the robust nature of their bikes is perfect for the rugged roads of Nepal.