A recent barrage of tariffs implemented by the US have left manufacturers around the world to relocate, revamp supply chains and increase prices. But a few brands have been able to circumvent the impact of tariffs with ingenious export tactics. A recent report from Bloomberg has revealed how Royal Enfield has been able to beat tariffs to maintain their prices in the US market. The report revealed that the brand increased its exports before President Donald Trump targeted Automobile imports.
The Bloomberg report further elucidates that Royal Enfield shipped nearly 9,000 motorcycles to The US instead of the usual 6,000 units it typically sells in North America a year. The decision was taken just before Trump announced a 25% duty on automobile and parts imports from India to US.
Beyond Royal Enfield other brands have opted to use different ways to be able to keep the prices stable against the Tariffs. Brands like Mitsubishi Motors and Audi have suspended deliveries to the US While Nissan Motor Co has ceased to sell two of its Mexican-built SUVs in the US.
Royal Enfield has been able to grasp a significant portion of the North American Market for nearly 8% of North America’s middle weight motorcycle market. Royal Enfield exports bikes such as Classic 350, Hunter, Meteor, Scram 411, Super Meteor and Shotgun to the US.
New Emerging Markets
Royal Enfield has been focusing on increasing their offerings and entering new emerging markets. As per stats revealed by MotorCycleNews.com
Royal Enfield has been able to recognize its global presence. And hence they have established CKD assembly facilities in Argentina, Columbia, Brazil, Bangladesh, and Nepal. Beyond that Royal Enfield has established a new CKD facility in Thailand as well. This helps them save up on taxes on exports and sell vehicles after a reassembly. Royal Enfield’s Thai plant has the capability to produce 30,000 bikes a year.
Royal Enfield has smartly set up in Thailand to gain a approach in the lucrative Asia-Pacific market. The Brand is all set to gain a grasp in global markets through their new mid sized bikes such as the 750 Interceptor and 650 Himalayan.
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