Eicher Motors has incorporated a wholly-owned subsidiary in the Netherlands to enhance the availability of various articles like spares, apparel and motorcycle accessories in Europe.
Royal Enfield Europe BV is being set up with a view to enhance the non-motorcycle supply chain for all of Europe, especially after Brexit made it tough for the firm to move parts there.
Eicher Motors, according to Bloomberg, is in talks to establish a warehouse, potentially in Germany or France.
“Brexit has made it challenging to move materials to and from the UK to Europe,” Arun Gopal, Royal Enfield’s international head, told Bloomberg. “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.
Gopal told the agency that the new warehouse will cut lead times to two weeks from 90 days currently. The company plans, the report added, to start with one warehouse for non-motorcycle products and is in talks with logistics specialists in the EU to manage its range.
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.