Royal Enfield plans capacity expansion

Chennai: Royal Enfield plans to expand its two-wheeler production capacity to 60,000 units a year, with an investment of Rs 25 crore, according to its Chief Executive Officer, Mr R.L. Ravichandran.

Addressing the launch of a new model, a 350-cc four-stroke Thunderbird Twinspark with twin spark plugs and unit construction engine (UCE) developed in-house, he said sales have been growing steadily and the company is now expanding its production capacity. In 2007-08, the company manufactured over 39,000 units.

The expanded production capacity would be in place by 2010-11, and by the time, it would have launched at least four more models — two for the domestic market and two for international markets — with the UCE.

UCE means the engine, clutch and gear box are in a single compact unit. In the current models, the clutch assembly and gear box are separate and bolted on to the engine. This engine has been developed in house using elements of the AVL, lean burn engine introduced a few years back.

The UCE means that the bike has 20 per cent less moving parts, better combustion, more mileage and better lubrication with a high volume pump in place, company officials said.

For the company, UCE represents the next level of growth, Mr Ravichandran said. It would introduce a series of variants for the domestic and international markets. The company has introduced a 500-cc UCE with an electronic fuel ignition in the international markets. The new models would be introduced at the international auto shows in Europe later this year.

On the need to deliver new models for a company that cannot afford to lose touch with a reputation for offering bikes with the classic look and feel of the World War II era, Mr Ravichandran said Royal Enfield has taken care not to meddle with the machine’s overall look and feel.

The UCE in the Thunderbird Twinspark means that customers will no longer have to deal with the chronic issues of owning a Bullet — the vintage version that has given the company the reputation it basks in today — which means no more push rod adjustment to stop tappet noise, no more oil leaks, no more checking oil level with a dipstick (a glass window now allows an instant check). The company has addressed the features that its customers may “not like but live with.”

Mr Siddhartha Lal, Managing Director and CEO, Eicher Motors, of which Royal Enfield is a division, said the company has been working on the twin spark plug technology since the late 1990s. After the launch of the Thunderbird with the AVL engine in 2001, the UCE builds on the features that made the previous version a success. The 500-cc version targets the export market and the 350-cc the domestic market.