Published On:March 26 2024
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"Eicher Motors Establishes Dutch Unit to Facilitate EU Expansion Plan"

Eicher Motors Ltd., the manufacturer of Royal Enfield motorcycles, has taken proactive measures to address logistical challenges arising from Brexit by incorporating a unit in the Netherlands. This strategic move aims to mitigate dependencies on the UK and facilitate smoother operations within mainland Europe.

In response to the complexities posed by Brexit, the company is actively considering the establishment of a warehouse in the EU, potentially located in Germany or France. The primary objective behind this initiative is to expedite the supply chain process for non-motorcycle products, including spare parts and branded merchandise.

Arun Gopal, Royal Enfield's international head, highlighted the logistical hurdles posed by Brexit, emphasizing the need for a more streamlined approach to material movement between the UK and mainland Europe. As the company's business continues to expand rapidly in the EU, the proposed warehouse is expected to significantly reduce lead times from the current 90 days to just two weeks.

Eicher Motors plans to commence operations with a single warehouse for non-motorcycle products, with discussions underway with logistics specialists in the EU to manage its range effectively. While Germany and France emerge as potential locations for the hub, the company has yet to finalize a decision on the precise location.

In a statement released on March 22, Eicher Motors disclosed an initial investment of €500,000 ($541,000) into the newly established unit, named Royal Enfield Europe BV. The company intends to infuse additional share capital into the venture in due course, underscoring its commitment to navigating the evolving dynamics of the EU market amidst the challenges posed by Brexit.

BS





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