Royal Enfield Explores New CKD Assembly Facilities in Africa, Mexico and Indonesia

Royal Enfield is exploring opportunities to establish additional completely knocked down (CKD) assembly facilities in Africa, Mexico and Indonesia as it looks to expand its international presence. The Eicher Motors-owned motorcycle manufacturer currently operates seven CKD facilities outside India, including two in Brazil and others in Argentina, Colombia, Thailand, Bangladesh and Nepal. Managing Director B. Govindarajan said the company is evaluating these markets to understand their potential and the demand for its mid-size motorcycle range. Indonesia is considered a particularly promising market as it is the world’s third-largest two-wheeler market.

The expansion plans come as Royal Enfield’s international business continues to improve, with Brazil emerging as its largest market outside India. During the second quarter of FY27, the company recorded its highest-ever quarterly motorcycle sales of 3,76,722 units, marking a 15% increase year-on-year. Domestic sales grew 16% to 3,40,847 units, while international sales reached 35,875 units. Eicher Motors also reported record consolidated revenue of ₹7,422 crore, up 20% compared with the corresponding quarter last year.

Meanwhile, Royal Enfield is working to increase production to meet strong customer demand following supply shortages during the festive season. Dealer inventory dropped to around seven days after Diwali, prompting the company to focus on rebuilding stocks to the normal level of two to three weeks. Bookings increased by more than 20% between April and October, while monthly production rose approximately 15% this year. The company expects its overseas expansion and improved production capacity to support its next phase of growth.

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