Royal Enfield is evaluating the possibility of setting up a completely knocked down (CKD) assembly facility in Mexico, as the iconic motorcycle brand accelerates its international expansion strategy amid strong overseas demand.
The move comes at a time when Brazil has emerged as Royal Enfield’s largest international market outside India, underlining the company’s growing influence in the global mid-size motorcycle segment.
According to Royal Enfield CEO B Govindarajan, the company is reassessing its business model in Mexico after the country sharply increased import tariffs on motorcycles earlier this year. Import duties reportedly rose from 15 percent to 35 percent beginning January 2026, prompting the motorcycle maker to explore local assembly operations.
Govindarajan stated that the company already has experience operating multiple CKD facilities globally and could replicate the same strategy in Mexico if required. Royal Enfield currently operates around seven CKD plants across markets including Brazil, Colombia, Thailand, Bangladesh, Nepal, and Argentina.
The company’s overseas business has been gaining momentum steadily. International sales reportedly grew around 20 percent in FY2026, with Royal Enfield selling nearly 120,000 motorcycles across global markets during the financial year.
However, the biggest highlight for the Chennai-based motorcycle manufacturer has been Brazil’s rapid rise. The South American nation recorded a remarkable 71 percent year-on-year growth for Royal Enfield in FY2026, making it the brand’s fastest-growing overseas market.
Royal Enfield sold over 35,000 motorcycles in Brazil during the fiscal year and is now planning to deepen its footprint in the country through retail expansion and additional manufacturing investments.
The company is also working toward establishing its own CKD facility in Brazil, moving beyond its current partnership-led assembly operations. Govindarajan noted that this would help support higher growth volumes in the coming years.
Royal Enfield’s relationship with Brazil is not new. The company inaugurated a CKD assembly facility in Manaus in 2022 with an annual capacity of over 15,000 units, aimed at catering to rising demand in the Latin American region.
Industry analysts believe the company’s expanding CKD network reflects a broader strategy to localize production, reduce import costs, improve delivery timelines, and strengthen its competitiveness in key international markets.
The company’s growing global ambitions are also expected to be supported by an aggressive product pipeline. Reports suggest Royal Enfield is preparing multiple new launches and upgrades, including larger-displacement motorcycles and refreshed variants across its portfolio.
With Latin America increasingly becoming central to Royal Enfield’s global growth story, the proposed Mexico CKD plant and expanded Brazil operations could mark the next phase of the brand’s international manufacturing push.