In recent years, Royal Enfield has focused its interest in carving out a larger market share in the mid-size motorcycle segment (250cc - 750cc) globally. In strengthening its reach, today the manufacturer announced start of ops at its local assembly unit and CKD facility in Thailand.
The South-East Asian development furthers RE's ‘commitment to the Asia Pacific Region‘. With operations underway, Royal Enfield now has three local CKD (Completely Knocked Down) units. One in Argentina, and Colombia in Latin America, and now in Thailand. In India, the company operates three manufacturing facilities in Chennai.
Royal Enfield Thai assembly unit
The Thai local assembly unit is located at Gateway City Industrial Estate, Moo 7 Huasamrong, Plaengyao Chachoengsao. And the factory unit will cater to supplies not just to Thai customers but as a distribution hub to other countries in South-East Asia region. This includes Indonesia, Vietnam, etc. The development presents RE with ‘significant advantage and growth opportunities'.
Operations at the new facility begin with local assembly of Himalayan, Interceptor 650 and Continental GT 650 models. The unit is setup in partnership with GPX. At this same unit, other brand motorcycles are also being manufactured / assembled, as can be seen in the photos below.
Royal Enfield entered the Thai market in 2015. Since then, it has been deemed a critical market for the manufacturer. Having entered many a new market in recent years, the company enjoys top position in mid-size motorcycle segment in multiple markets.
This includes Thailand, Australia, New Zealand, and Korea. A consumer base that's growing in Asia Pacific in tandem with a significant retail network in the region is key to growth. Add to this, the new local assembly unit, and Royal Enfield aims for a critical boost for business growth in Southeast Asia.
CKD assembly plant in Thailand
B Govindarajan, Executive Director, 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."
"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 the Asia-pacific region, and also become the hub for the rest of Southeast Asian markets."