|Motorcycle manufacturer Royal Enfield plans to spend Rs. 800 crore in 2018-19, including on the second phase of the Vallam Vadagal plant near Chennai.|
“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,” said Siddhartha Lal, MD & CEO, Eicher Motors Ltd.
With the first phase of the Vallam Vadagal factory completing its first full year of operations in 2018-19, and with productivity optimisation at its Oragadam plant, Royal Enfield will have an annual production capacity of about 950,000 units.
Sales, exports up
In 2017-18, Royal Enfield's total domestic sales stood at 801,230 units, up 23 per cent over the previous year’s volume of 651,107 units. Exports grew 25 per cent to 19,262 units.
“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,” said Lal.
The company will also complete construction of its technology centre in Chennai this year, and invest further in the development of new products to meet upcoming regulations and to expand its portfolio for global markets.
To further strengthen the brand and accelerate market development activities, Royal Enfield has decided to set up wholly owned subsidiaries in Indonesia and Thailand in 2018-19.
With a wide distribution network in India, a growing international presence and latest capabilities in product development, Royal Enfield hopes to become a strong player in the middleweight motorcycle segment globally.