BRAZIL/SOUTH AMERICA REPORT  

Royal Enfield has started its first assembly line in South America to produce motorcycles. The plant is located in Manaus-AM, Brazil and is the fourth in the world to operate under the CKD system.

Capacity is set at 15,000 motorcycles per year and the line is able to produce any of the models in the current global product portfolio.

Source: Automotive Business     Read The Article

PSR Analysis: Assembly in Manaus is a move to reduce import taxes and improve competitiveness of the product in Brazil. Manaus already has Honda and other motorcycle manufacturers; it has a capable workforce and a complete production support ecosystem to support Royal Enfield’s assembly operations. PSR

Fabio Ferraresi is Director Business, Development South America, for Power Systems Research