Royal Enfield maker Eicher Motors sets up Dutch unit for EU expansion plan

By Tuhin Kar

The maker of Royal Enfield motorcycles has incorporated a unit in the Netherlands with plans for a warehouse in the EU, after Brexit made it more difficult to move parts to mainland Europe.
 

India’s Eicher Motors Ltd. set up the Dutch arm to reduce its dependency on the UK and is in talks to establish a warehouse, potentially in Germany or France, to speed up the supply of non-motorcycle products like spare parts and branded merchandise. 

“Brexit has made it challenging to move materials to and from the UK to Europe,” Arun Gopal, Royal Enfield’s international head, said in an interview. “Also, the UK is not geographically close to some parts of Europe, so we needed a warehouse that could service that region more effectively.”

Founded in the UK at the start of the last century and with motorcycles that were used in both World Wars, the company imports bikes and other parts into Europe from India and sells them through local distributors.

The business is growing quickly in the EU and the new warehouse will cut lead times to two weeks from 90 days currently, Gopal added.

The company plans to start with one warehouse for non-motorcycle products and is in talks with logistics specialists in the EU to manage its range, he said. Germany and France are among prospective countries for the hub, though no decision has been reached on location yet, Gopal added.

Eicher Motors has invested €500,000 ($541,000) into the new unit, called Royal Enfield Europe BV, and will inject share capital in due course, the company said in a March 22 stock exchange statement.