Royal Enfield, the global leader in the mid-size motorcycle segment, on Friday, announced the commencement of operations of its exclusive local assembly unit and complete knock-down (CKD) facility in Nepal.

CKD means that a product is delivered in parts and assembled at the destination.

Located in Birgunj, the new facility is the Royal Enfield’s fifth CKD assembly unit in the world—after Brazil, Thailand, Colombia and Argentina—in addition to its state-of-the-art manufacturing and ancillary facilities located in Tamil Nadu, India.

Set up in collaboration with the Triveni Group, this announcement is a significant boost to the company’s business in the South Asian region, and further reiterates Royal Enfield’s commitment to Nepal, the company said.

With an assembly capacity of 20,000 units per year, a state-of-the-art assembly unit in Birgunj is spread over 100,000 square feet.

Royal Enfield also launched its first set of locally assembled motorcycles—the new Classic 350 and the SCRAM 411.

The Classic 350 will be available at Rs499,000 and the Scram 411 will be available at Rs660,000.

B Govindarajan, CEO of Royal Enfield, said, “It has been our endeavour to grow and expand the middleweight motorcycle segment globally, and over the last few years, we have seen immense success in our international operations.”

“This new CKD facility in Nepal is in line with our ambitious global expansion strategy of investing in markets with huge potential to grow. We are committed to bringing our globally awarded line-up of gorgeous motorcycles, and pure motorcycling experiences to passionate riders in Nepal.”

The company said that the motorcycle market in Nepal is on a confident rebound journey, and Royal Enfield sees huge potential for the market to grow substantially.

“With the market expected to grow at 10 percent to 15 percent in the coming years, Royal Enfield believes that the trend of premiumisation of motorcycles will only increase and Royal Enfield’s resilient, reliable and high torque machines will be perfectly suited for riding styles and the rugged terrains of Nepal.”

Yadvinder Singh Guleria, chief commercial officer of Royal Enfield said, “Today marks an important chapter of our journey in the Nepali market as we announce the commencement of our CKD operations in Birgunj, in partnership with Triveni group.”

“This is a testament to our commitment to the market potential and the growing motorcycling community.”

The company said that it would expand the retail network from 18 currently, to 35 touchpoints across 30 cities, over the next year.

“We are confident that we will be able to attract a new set of consumers and also grow the middleweight segment in Nepal,” said Guleria.