In 2020, Royal Enfield announced plans to open a new production plant after observing huge demand and production success in Thailand. This new Thai local assembly unit is situated at the Gateway City Industrial Estate, Moo 7 Huasamrong, Plaengyao, Chachoengsao. The production unit will suffice the motorcycle supplies to Thai customers and also act as a distribution hub for other countries in the South-East Asia region, including countries like Indonesia, Vietnam, etc. This development project and the factory setup in partnership with GPX present Royal Enfield with significant advantages and growth opportunities.
This new unit is about to assemble the Royal Enfield Himalayan, the Interceptor 650, and the Continental GT 650. According to the reports, apart from RE, other motorcycle brands are also being manufactured at this production unit. Royal Enfield crossed the Thai border in 2015 and since then it has become a critical market for manufacturers. The motorcycle also entered the lanes of the markets of other countries, namely Australia, New Zealand, and Korea.
The Executive Director of Royal Enfield, B. Govindarajan, stated that the company has been working extensively on the growth of this middleweight motorcycle segment globally. The brand is working on plans to set up local assembly units in some major markets, beginning with Argentina in 2020 and then Colombia in 2021, which is this year, in order to grow the business and meet the increasing demand for motorcycles.
In addition to that, Royal Enfield now owns three local CKD (Completely Knocked Down) units in Argentina and Colombia in Latin America. The brand also owns three state-of-the-art manufacturing facilities in Chennai, India. An increase in the demand for Royal Enfield products might have convinced the company to establish a local assembly in Thailand and also aim at expanding the retail network globally.
