Royal Enfield to Increase Production Capacity to 9,50,000 Units

Royal Enfield is all prepared to take their total production capacity to 9.5 lakh units from this year. The move came after 23 percent growth was registered in last fiscal, helping the brand strengthen its position among rivals in India.

They have always struggled to meet demand in most places as production was limited to a much lower number before. Buyers prefer going for utility filled models like Classic 350 and Bullet 350 as they are easy to operate and demand minimum maintenance when compared to models like Classic 500 and Himalayan. They may reach the million mark in FY 2019-2020.

Interceptor 650 and Continental GT 650 will also require an assembly line as they are using better frame and engine than all other motorcycles sold till date. Also, they will now need to bring ABS into every bike as all of them use engines over 150cc. Royal Enfield will also utilize some of their INR 800 crore investment for sure.

They have improved their distribution network and multiple dealerships now exist in major cities of India. They are getting colorful day by day as buyers now prefer shade specific options like Thunderbird X and Classic 350 Redditch Edition. RE ranks fifth in top motorcycle brands of India.

Siddhartha Lal, MD & CEO, Eicher Motors Ltd. said, “Our demand continues to exceed supply, and we continue to see strong growth from all our markets. Therefore, we have decided to expand our production capacity with the second phase of our Vallam Vadagal plant near Chennai, Tamil Nadu. We will also complete construction of our Technology Centre in Chennai this year, and invest further in the development of new products to meet upcoming regulations and to expand our portfolio for our global markets.”

“We continue to strengthen our offerings with new models and variants such as the new Thunderbird X, the Classic Gunmetal Grey, Stealth Black and Redditch series, as well as our soon-to-be-introduced Twins. With a wide distribution network in India, a growing international presence and state-of-the-art capabilities in product development, Royal Enfield is well positioned to grow the middleweight motorcycle segment globally”