Royal Enfield is looking to energise its supply chain in 2024, with the opening of a new hub in the Netherlands that is reportedly handling spare parts and merchandise.
The new premises have come due to the claimed complications of Brexit, and the site will reduce the brand’s dependence on its UK HQ and technology centre at Bruntingthorpe. It could be just one of several new sites, with Eicher Motors (the parent company of Royal Enfield) also potentially eyeing similar sites in France and Germany.
It’s reported that the site will be handling the distribution and supply of spare parts and accessories for bikes, as well as riding kit, clothing and merchandise.
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Bloomberg reports that Arun Gopal, Royal Enfield’s international head, said:
“Brexit has made it challenging to move materials to and from the UK to Europe … Also, the UK is not geographically close to some parts of Europe, so we needed a warehouse that could service that region more effectively.”
The news of the facility, called Royal Enfield Europe BV, comes just over a month since the Reuters News Agency reported that Royal Enfield Chief Executive, B. Govindarajan, spoke about the difficulties of exporting bikes to areas across the EU and the US. In an investor call, it’s reported that he put a near 10 per cent drop in sales down to high interest rates and inflation in key export markets such as the UK, Europe and the United States. Adding to that are the tensions in the Red Sea trade route, with tensions there thought to be pushing up exports by anything up to 25 per cent, and delaying shipments by as much as 30 days.
Bloomberg reports that the new Dutch facility has already benefited from €500,000 (£428,000) investment.
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