We recently told you about India based Royal Enfield opening an Argentinian assembly facility.  Now just about one month later, the brand plans to open an assembly plant in Thailand.

According to NikkeiAsia, Royal Enfield’s sales in Thailand have been growing.  In fact, 2019 saw the brand’s sales double in the Asian nation.  Indian hopes the new facility will help it in its international expansion.

New Thai factory

Current plans call for the plant to assemble motorcycles for more than Thailand.  The new factory will act as a hub for exports to other countries in the Association of Southeast Asian Nations.  That group includes high-density motorcycle markets like Indonesia and Vietnam.

The Thai factory will be located in Chachoengsao Province.  This province is part of an industrial zone that the Thai government is promoting to various companies.

royal enfield

The Royal Enfield Interceptor 650’s pricing is well below other premium models in Thailand.

The new plant will be a completely knocked down (CKD) facility.  CKD facilities assemble individual parts into completed vehicles.  At least 40 percent of the parts will be manufactured locally, while the remaining parts will be shipped to the factory from India.

Price advantage

NikkeiAsia quotes an unnamed source as saying that the company will produce between 4,500 and 5,000 units in the first year.  The source went on to say:

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.”

The source may be correct.  Royal Enfield’s popular Interceptor 650 model sells for around 219,000 baht ($7,000) in Thailand.  That price is well below other brands in roughly the same class which can be priced as high as 800,000 baht ($25,600).

All photo credit: Royal Enfield

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