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Royal Enfield expands global footprint with new CKD assembly plant in Brazil

Royal Enfield has announced the start of operations at its new CKD assembly facility located in Brazil, expanding the brand’s global footprint. This is the fourth Complete Knocked Down (CKD) assembly plant of the Chennai-based motorcycle giant globally with other units located in Thailand, Colombia and Argentina respectively. The new facility marks an important step in by RoyalEnfield plans for the Latin American region with a host of new launches planned in the coming months.

Contractor Sameer Fayaz

Update on:
December 8, 2022, 11:40 am

Royal Enfield's new CKD facility in Brazil will have an annual production capacity of 15,000 units
Royal Enfield’s new CKD facility in Brazil will have an annual production capacity of 15,000 units

Also read: Royal Enfield Himalayan 450 equipped with tubeless spokes: Details

B Govindarajan, CEO - Royal Enfield at the company's new CKD facility in Brazil

B Govindarajan, CEO – Royal Enfield at the company’s new CKD facility in Brazil

Speaking at the inauguration of the new facility, Royal Enfield CEO B Govindarajan said: “Royal Enfield has been working hard to develop the midsize motorcycle segment globally. With markets such as the Americas, Europe and Asia-Pacific regions growing significantly, our strategic aim is to get closer to these markets and grow our business. We started this journey several years ago and have established strategic assembly facilities in Thailand, Argentina and Colombia in LatAm. Brazil was once a very strong market for Royal Enfield and will soon become our largest market outside of India. We have seen over 100% growth since 2019 in Brazil. We are excited to open our fourth CKD facility globally in Brazil and this is a testament to our commitment to the region and market potential as well as to the growing community of equestrian enthusiasts. our development in the market. We are confident that this facility will help us grow the mid-segment market in Brazil while allowing us to efficiently serve the growing demand.”

The new CKD plant will have an annual production capacity of more than 15,000 units and be located in Manaus, the capital of the state of Amazonas in Brazil. The plant will assemble engines domestically for RE’s complete lineup starting with the Classic 350, Meteor 350, Himalayan and Interceptor 650 and Continental GT 650 motorcycles. It’s safe to say there’s plenty of room for multiple models. than participate in future portfolios. The new factory promises faster delivery times for the Brazilian market. These bikes will be made in India and shipped as CKD kits from the manufacturer’s India factory in Tamil Nadu.

Also read: Royal Enfield registers 37% sales growth in November supported by 350 cc . range

Royal Enfield management inaugurated new CKD factory in Manaus, Brazil

Royal Enfield management inaugurated new CKD factory in Manaus, Brazil

Royal Enfield entered the Brazilian market in 2017 and has since made great strides in the Americas region. The company says it is currently one of the top five in the midsize motorcycle segment (250-750 cc) in markets such as Brazil, Argentina, Colombia, Mexico and North America. The new factory is expected to meet the growing demand for Royal Enfield motorcycles in the coming years, while the brand will also expand its sales network in the region.

In related news, Royal Enfield will also re-enter the UK market on its own next year. The company will return to its roots with a subsidiary in charge of sales and distribution severing ties with MotoGB, its current distributor in the market, as of May 1, 2023.

First published date: December 8, 2022, 11:09 am IST


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