by Swarajya Staff from https://swarajyamag.com
Expanding its overseas operations, Indian motorcycle maker Royal Enfield is setting up an assembling plant in Thailand, reports Nikkei Asian Review.
This would mark Royal Enfield’s second plant out of India, as it recently operationalised its first overseas factory in Argentina. The company aims to utilise the upcoming Thai plant as a hub to export to other nations in the ASEAN, including motorcycle-intensive markets like Indonesia and Vietnam.
It should be noted that Thailand is Southeast Asia’s largest automobile manufacturer, and houses factories of some noted and global motorcycle majors like Honda, Yamaha and Harley-Davidson.
The Royal Enfield factory in Thailand’s Chachoengsao province will be using at least 40 per cent of local parts while importing the rest from India. The facility is expected to start operations in April 2021.
It should be noted that Royal Enfield has witnessed its 2019 year-on-year sales in Thailand more than double. It already has 36 showrooms in Thailand and is planning to expand with showrooms in Vietnam, Philippines, Malaysia and Indonesia in the coming years.