Royal Enfield marks mid-2021 for plant
Indian mid-sized motorcycle manufacturer Royal Enfield plans to open its Chachoengsao assembly plant in mid-2021, using Thailand as its production hub in Asia-Pacific.
Vimal Sumbly, Royal Enfield's head for business in Asia-Pacific, said yesterday the plant will have capacity of over 3,500 units a year, based on the company's sales in Thailand.
"Thailand is a high-potential market for motorcycles, especially mid-sized motorcycles," he said.
Thailand has been the company's automotive industry hub in Asean for more than 15 years.
The company declined to give information on investment budget.
Royal Enfield also plans to expand to 36 branches in Thailand to better serve customers nationwide by March next year, up from 30 at present.
In Asia-Pacific, it plans to have a total of 155 branches, up from 150 at present, within 2021.
During the pandemic, overall motorcycle sales in Thailand from January to October dropped by 13% year-on-year to 1,273,433 units, but mid-sized motorcycle sales increased by 2% year-on-year to 52,400 units.
Royal Enfield saw sales increase by 71% year-on-year to 2,810 units. The company has a market share of 5.4% in Thailand's mid-sized motorcycle segment (250-750cc).
Mr Sumbly said the company also seeks to expand its investment in Indonesia because the country has a large population, implying intrinsic demand for mid-sized motorcycles.
This year, the company opened its first assembly unit outside India in Buenos Aires, Argentina, with more than 17% growth year-on-year for the last five years and sales in the international market rising 96% in 2019-20.
Siddhartha Lal, managing director of Eicher Motors, which oversees the Royal Enfield brand, said the company aims to become the leader in the global mid-sized motorcycle segment, emphasising daily riding and leisure purposes.
Royal Enfield launched its new motorcycle model yesterday for the Thai market. The Royal Enfield Meteor 350 is designed as a classic cruiser with modern capabilities.