Royal Enfield explores CKD assembly facilities in Africa, Mexico and Indonesia as exports gather pace
The company, which currently operates seven CKD facilities outside India, is evaluating these markets to assess the potential for local assembly and the viability of its mid-size motorcycle portfolio.
- Nov 14, 2026,
- Updated Nov 14, 2026 3:09 PM IST
Eicher Motors-owned Royal Enfield is exploring opportunities to set up additional completely knocked down (CKD) assembly facilities in markets such as Indonesia, Africa and Mexico as it looks to strengthen its international presence and tap new growth opportunities.
The company, which currently operates seven CKD facilities outside India, is evaluating these markets to assess the potential for local assembly and the viability of its mid-size motorcycle portfolio.
“Some markets, such as those in Africa and Mexico, are opening up, and we are exploring opportunities there. Indonesia is another market with significant potential, being the world's third-largest two-wheeler market,” B. Govindarajan, Managing Director of Eicher Motors and CEO of Royal Enfield, said during the company's Q2 media earnings call.
“We are studying these markets to assess how we can enter them and whether there is room for our kind of motorcycles. We will gradually enter these markets when the time is right,” added Govindarajan.
Royal Enfield currently operates seven CKD assembly facilities across Brazil (two), Argentina, Colombia, Thailand, Bangladesh and Nepal.
The proposed expansion comes as Royal Enfield looks to accelerate its international growth after spending the past two years building the foundations for overseas expansion through local assembly operations, subsidiaries and dedicated teams.
Its international business is showing signs of improvement, with Brazil emerging as its largest market outside India.
The expansion plans come on the back of a record quarter for Eicher Motors. The company reported its highest-ever consolidated revenue from operations of Rs 7,422 crore in the second quarter of FY27, up 20% year-on-year. EBITDA rose 16% to a record Rs 1,760 crore, while profit after tax increased 15% to Rs 1,573 crore.
Royal Enfield recorded its highest-ever quarterly motorcycle sales of 3,76,722 units, a growth of 15% over the 3,27,067 units sold in the corresponding quarter last year. Domestic sales grew 16% to 3,40,847 motorcycles, while international volumes stood at 35,875 units.
Royal Enfield's festive-season sales were constrained by supply shortages despite strong demand, with dealer inventory falling to just around seven days after Diwali, as the motorcycle maker looks to ramp up production to replenish stocks and cater to a growing booking pipeline.
The company said its retail performance during the festive period was limited by the availability of motorcycles, even as bookings and customer enquiries continued to rise. Royal Enfield's bookings grew more than 20% year-on-year between April and October, with the momentum sustaining even after the initial festive period.
“Post Diwali, our channel stock is only about a week's time now,” Govindarajan said.
Royal Enfield is now looking to rebuild dealer inventory to the normal level of two to three weeks as it increases production. Monthly production has risen around 15% this year, while overall volume growth between April and October stood at approximately 18%, according to the management.
Eicher Motors-owned Royal Enfield is exploring opportunities to set up additional completely knocked down (CKD) assembly facilities in markets such as Indonesia, Africa and Mexico as it looks to strengthen its international presence and tap new growth opportunities.
The company, which currently operates seven CKD facilities outside India, is evaluating these markets to assess the potential for local assembly and the viability of its mid-size motorcycle portfolio.
“Some markets, such as those in Africa and Mexico, are opening up, and we are exploring opportunities there. Indonesia is another market with significant potential, being the world's third-largest two-wheeler market,” B. Govindarajan, Managing Director of Eicher Motors and CEO of Royal Enfield, said during the company's Q2 media earnings call.
“We are studying these markets to assess how we can enter them and whether there is room for our kind of motorcycles. We will gradually enter these markets when the time is right,” added Govindarajan.
Royal Enfield currently operates seven CKD assembly facilities across Brazil (two), Argentina, Colombia, Thailand, Bangladesh and Nepal.
The proposed expansion comes as Royal Enfield looks to accelerate its international growth after spending the past two years building the foundations for overseas expansion through local assembly operations, subsidiaries and dedicated teams.
Its international business is showing signs of improvement, with Brazil emerging as its largest market outside India.
The expansion plans come on the back of a record quarter for Eicher Motors. The company reported its highest-ever consolidated revenue from operations of Rs 7,422 crore in the second quarter of FY27, up 20% year-on-year. EBITDA rose 16% to a record Rs 1,760 crore, while profit after tax increased 15% to Rs 1,573 crore.
Royal Enfield recorded its highest-ever quarterly motorcycle sales of 3,76,722 units, a growth of 15% over the 3,27,067 units sold in the corresponding quarter last year. Domestic sales grew 16% to 3,40,847 motorcycles, while international volumes stood at 35,875 units.
Royal Enfield's festive-season sales were constrained by supply shortages despite strong demand, with dealer inventory falling to just around seven days after Diwali, as the motorcycle maker looks to ramp up production to replenish stocks and cater to a growing booking pipeline.
The company said its retail performance during the festive period was limited by the availability of motorcycles, even as bookings and customer enquiries continued to rise. Royal Enfield's bookings grew more than 20% year-on-year between April and October, with the momentum sustaining even after the initial festive period.
“Post Diwali, our channel stock is only about a week's time now,” Govindarajan said.
Royal Enfield is now looking to rebuild dealer inventory to the normal level of two to three weeks as it increases production. Monthly production has risen around 15% this year, while overall volume growth between April and October stood at approximately 18%, according to the management.