Royal Enfield to begin making motorcycles in Thailand
Royal Enfield to begin making motorcycles in Thailand
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India's Royal Enfield to begin making motorcycles in Thailand
British-bred brand looks to win over ASEAN with cult image and low prices
Royal Enfield motorcycles are substantially cheaper than other models in Thailand, where its sales doubled in the last fiscal year. © Reuters
APORNRATH PHOONPHONGPHIPHAT, Nikkei staff writerSeptember 25, 2020 14:37 JST
BANGKOK -- India-based motorcycle maker Royal Enfield is setting up an assembly plant in Thailand next year as it continues its Southeast Asian expansion drive.
The Thai facility will be the second overseas plant for the company after its factory in Argentina. It is scheduled to begin operation by the end of September.
On Thursday, U.S.-based Harley-Davidson announced its withdrawal from the Indian market -- a stark contrast to Royal Enfield's efforts to expand globally.
One of the oldest motorcycle brands in the world, British-bred Royal Enfield has survived two world wars and has seen 2019 year-on-year sales in Thailand more than double to 3,146 units.
Encouraged by growing sales in Thailand, the company is setting up the assembly plant as a hub for exports to other countries in the Association of Southeast Asian Nations, including the motorcycle-intensive markets of Indonesia and Vietnam.
Thailand is the largest automobile manufacturer in Southeast Asia, hosting primarily Japanese, U.S. and Chinese automakers. In the motorcycle sector, Japan's Honda Motor and Yamaha Motor as well as Harley-Davidson have set up factories there.
Royal Enfield motorcycles were first produced in Britain in 1901. After the parent company ceased operations in the U.K. in the early 1970s, its Indian operations took up the slack. In 1994, the company was acquired by Indian commercial vehicle maker Eicher Motors, which now owns the iconic brand.
"We are bringing our success from India into Thailand with the goal to be number one in the midsize motorcycle market in Thailand," Royal Enfield Thailand CEO Siddhartha Lal said in an email to the Nikkei Asian Review, referring to motorcycles in the 250 cc to 750 cc class.
The Thai factory will be a completely knocked-down facility in Chachoengsao Province, part of an industrial zone the government has been keen on promoting. Such factories assemble individual parts into finished vehicles. At least 40% of parts will be local, while the rest would be shipped from India, with operations expected to start in April 2021.
Kasem Kawchari, marketing manager of the Thai unit, said the company will be able to produce 4,500 to 5,000 units in the first year, which is also the target for sales. "I think we have been gaining a greater customer base in Thailand due to our accessible prices and marketing events designed to create Royal Enfield's [customer base] in Thailand," said Kasem.
The price of the popular Interceptor-650 model is around 219,000 baht ($7,000) -- well below other brands in roughly the same class, which cost around 800,000 baht.
Royal Enfield has 36 showrooms in Thailand and is planning to open similar shopfronts in Vietnam, the Philippines, Malaysia and Indonesia over the next few years, Kasem said.
India's Royal Enfield to begin making motorcycles in Thailand
British-bred brand looks to win over ASEAN with cult image and low prices
Royal Enfield motorcycles are substantially cheaper than other models in Thailand, where its sales doubled in the last fiscal year. © Reuters
APORNRATH PHOONPHONGPHIPHAT, Nikkei staff writerSeptember 25, 2020 14:37 JST
BANGKOK -- India-based motorcycle maker Royal Enfield is setting up an assembly plant in Thailand next year as it continues its Southeast Asian expansion drive.
The Thai facility will be the second overseas plant for the company after its factory in Argentina. It is scheduled to begin operation by the end of September.
On Thursday, U.S.-based Harley-Davidson announced its withdrawal from the Indian market -- a stark contrast to Royal Enfield's efforts to expand globally.
One of the oldest motorcycle brands in the world, British-bred Royal Enfield has survived two world wars and has seen 2019 year-on-year sales in Thailand more than double to 3,146 units.
Encouraged by growing sales in Thailand, the company is setting up the assembly plant as a hub for exports to other countries in the Association of Southeast Asian Nations, including the motorcycle-intensive markets of Indonesia and Vietnam.
Thailand is the largest automobile manufacturer in Southeast Asia, hosting primarily Japanese, U.S. and Chinese automakers. In the motorcycle sector, Japan's Honda Motor and Yamaha Motor as well as Harley-Davidson have set up factories there.
Royal Enfield motorcycles were first produced in Britain in 1901. After the parent company ceased operations in the U.K. in the early 1970s, its Indian operations took up the slack. In 1994, the company was acquired by Indian commercial vehicle maker Eicher Motors, which now owns the iconic brand.
"We are bringing our success from India into Thailand with the goal to be number one in the midsize motorcycle market in Thailand," Royal Enfield Thailand CEO Siddhartha Lal said in an email to the Nikkei Asian Review, referring to motorcycles in the 250 cc to 750 cc class.
The Thai factory will be a completely knocked-down facility in Chachoengsao Province, part of an industrial zone the government has been keen on promoting. Such factories assemble individual parts into finished vehicles. At least 40% of parts will be local, while the rest would be shipped from India, with operations expected to start in April 2021.
Kasem Kawchari, marketing manager of the Thai unit, said the company will be able to produce 4,500 to 5,000 units in the first year, which is also the target for sales. "I think we have been gaining a greater customer base in Thailand due to our accessible prices and marketing events designed to create Royal Enfield's [customer base] in Thailand," said Kasem.
The price of the popular Interceptor-650 model is around 219,000 baht ($7,000) -- well below other brands in roughly the same class, which cost around 800,000 baht.
Royal Enfield has 36 showrooms in Thailand and is planning to open similar shopfronts in Vietnam, the Philippines, Malaysia and Indonesia over the next few years, Kasem said.
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Cowshed Cowboy
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Re: Royal Enfield to begin making motorcycles in Thailand
By coincidence my eye was drawn to a really cool looking military green Royal Enfield parked outside the bar on Beach road I was having a beer in yesterday afternoon. I'm sure it wasn't the same brand but the scene with Steve McQueen in The Great Escape came to mind.
Yes sir, I can boogie, I can boogie, boogie, boogie all night long.
Re: Royal Enfield to begin making motorcycles in Thailand
Love the optimism.
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phuketrichard
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Re: Royal Enfield to begin making motorcycles in Thailand
sorry,that was a Triumph!!!Cowshed Cowboy wrote: ↑Sat Sep 26, 2020 8:11 am By coincidence my eye was drawn to a really cool looking military green Royal Enfield parked outside the bar on Beach road I was having a beer in yesterday afternoon. I'm sure it wasn't the same brand but the scene with Steve McQueen in The Great Escape came to mind.
This is the Enfield i owned here in Phuket and sold in 96
There great bikes and very popular in Nepal,
In a nation run by swine, all pigs are upward-mobile and the rest of us are fucked until we can put our acts together: not necessarily to win, but mainly to keep from losing completely. HST
Re: Royal Enfield to begin making motorcycles in Thailand
Nice.
Who’s Manuel, a Spanish mechanic?
Who’s Manuel, a Spanish mechanic?
Don’t listen to Chinese whispers.
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Robins
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Re: Royal Enfield to begin making motorcycles in Thailand
These are the same branding crap as the Chinese MG's sporting UK flags. These are Indian bikes with less British DNA than I have. Considering the incredible reliability of the Japanese brands, especially Honda it would be silly to swith.
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Bitte_Kein_Lexus
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Re: Royal Enfield to begin making motorcycles in Thailand
They're like a third of the price of Japanese bikes and have proven reliability. I'm just wondering whether an FTA with Thailand would mean cheaper price here vs the regular Indian importa. 4.5-6k is still pricey considering they should be priced way cheaper if no import tax.Robins wrote:These are the same branding crap as the Chinese MG's sporting UK flags. These are Indian bikes with less British DNA than I have. Considering the incredible reliability of the Japanese brands, especially Honda it would be silly to swith.
Ex Bitteeinbit/LexusSchmexus
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Clutch Cargo
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Re: Royal Enfield to begin making motorcycles in Thailand
With the current baht xchange rate that's now $7296...yet it sells here for $6000 fully imported from India.The price of the popular Interceptor-650 model is around 219,000 baht ($7,000) -- well below other brands in roughly the same class, which cost around 800,000 baht.
Makes me wonder how much cheaper it will be made/assembled in Thailand unless they get great subsidies/incentives to set up shop there.
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