Royal Enfield sets up Thailand assembly unit
NEWDELHI: Royal Enfield, India’s biggest middle-weight premium motorcycle maker, is setting up its first assembly plant and forming a wholly owned subsidiary in Thailand, the firm announced on Friday.
The plant marks a significant step by the Eicher Motors Ltd-owned company to establish itself on the global stage and have manufacturing bases in different locations to gain flexibility in production. The new production line will be Royal Enfield’s first outside India and the subsidiary will be its first in the Asia-pacific region.
The Siddhartha Lal-led firm has been trying to create a niche for itself in the global stage, especially in South-east Asia, Western Europe, and North America after establishing itself as a clear market leader in the premium middleweight category in India.
This will be its second significant capital expenditure outside India after its investment in setting up a technical centre in the UK. Thailand has become Royal Enfield’s third home after the UK, where it originated, and India, according to Lal, managing director and chief executive, Eicher Motors Ltd.
The initial success of the 650 twins in Thailand has proven that Royal Enfield is poised to fill the gap in mid-size segment.
“With a massive segment of commuters ready to upgrade and a robust long-distance, leisure riding culture in the country, Thailand offers huge headroom for growth for Royal Enfield. We believe that localising our operations in Thailand will allow us to serve our customers at a closer and more intimate level,” said Lal.