Royal Enfield is trying to streamline its supply chain in 2024, with the opening of a new center in the Netherlands that is allegedly handling spare parts and goods.
The new facilities have arisen due to alleged Brexit complications, and the location will reduce the brand’s dependence on its headquarters in the UK and the technology center in Bruntingthorpe. It may be just one of several new locations, with Eicher Motors (the parent company of Royal Enfield) also potentially eyeing similar locations in France and Germany.
Reportedly, the facilities will be involved in the distribution and supply of spare parts and accessories for motorcycles, as well as riding gear, clothing, and merchandise.
The news of the factory’s creation, named Royal Enfield Europe BV, comes just over a month after news agency Reuters reported that Royal Enfield’s CEO, B. Govindarajan, discussed the difficulties of exporting motorcycles to EU and US regions. In a meeting with investors, B. Govindarajan mentioned that the approximately 10% drop in sales is due to high interest rates and inflation in key export markets such as the UK, Europe, and the United States. This is compounded by tensions in the Red Sea trade route, which are believed to be increasing exports by about 25% and delaying shipments by 30 days.
