In a move to partially circumvent import tariff barriers of up to 35% in Latin America’s MERCOSUR free trade area, Royal Enfield is to start assembling completely knocked down (CKD) component kits in Argentina.
A local motorcycle assembly unit has been established in partnership with the Indian brand’s Argentine concessionaire Grupo Simpa at its facility in Campana, Buenos Aires. Initially, this will target production of three models — the Himalayan adventure bike plus Interceptor and Continental GT 650 twin variants.
Grupo Simpa has been distributing Royal Enfield machines since 2018, opening a first retail outlet in the Argentine capital. It has subsequently expanded to a network of five solus dealerships. Including these, the brand now has 31 solus stores and 40 other retail operations in various Latin American countries.
Commenting on the development, Royal Enfield chief executive Vinod Dasari said: “With a strategic view to cater to growing demand and gain significant market advantage, we have been pursuing our plans to set up local assembly units across specific markets in the Asia-Pacific region and South America. A CKD plant in Argentina is the first of these.”