Production is heading to South America.
For the past year or so, despite slowly degrading sales numbers on its local market, outside of India, Royal Enfield’s numbers are thriving. The Royal Enfield Himalayan and 650 Twins have consistently been the brand's top-selling products abroad, a trend the manufacturer isn’t shying away from.
Enfield is fully embracing its mid-size popularity on the global scene by bringing production closer to its biggest markets. The manufacturer recently inaugurated a brand-new production plant in Argentina in collaboration with local distributor Grupo Simpa.
The move doesn’t come as a big surprise, considering motorcycles are a popular means of transportation in South America. Since Royal Enfield entered the Argentinian market in 2018, the country has become an important player for Royal Enfield, especially for its mid-size products.
Sure enough, the new Buenos Aires plant will source materials from Enfield’s home base in Chennai and assemble the Himalayan, Continental GT, and Interceptor 650. Production is expected to begin as early as September, 2020.
“Royal Enfield has been working steadily to grow and expand the middleweight motorcycling segment globally and also to increase our footprint in important global markets. Over the last couple of years, we have grown our international presence significantly and now have a wide retail presence across 60 countries,” commented Royal Enfield CEO Vinod K. Dasari.
“With a strategic view to cater to growing demand and to gain significant market advantage, we have been pursuing our plans to set up local assembly units across specific markets in the Asia Pacific region and across South America. In the first of these, we are very happy to announce the first CKD assembly plant in Argentina.”
Having a foothold in South America will allow the company to price its products competitively for the market and expand its reach. The new plant is Enfield’s first assembly line outside of Asia. In 2019, the company also fired up production in Thailand.