Tuesday, July 22, 2014

More on Colombia

At first I didn't understand what the fuss was all about with the new distributor in Colombia. After all, Royal Enfield has been in Colombia since 2010. But during those years they imported bikes from India. Now they are planning to import completely knocked down (CKD) kits. Readers may remember that this is how manufacture of Royal Enfields in India started. Later, more and more components were built locally until complete bikes were built. Is history about to repeat itself in Latin America? Colombia has recently surpassed Argentina as the second largest economy in South America. Now, I don't know all the details, but Colombia is a member of the Pacific Alliance, a trade bloc that includes, Chile, Mexico and Peru. Colombia also has a free trade agreement with the US so that may position it as an ideal place to produce bikes for export in the Americas.  Is that the Enfield strategy behind this move?

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