Royal Enfield commences production at new Vallam Vadagal facility

Eicher Motors has started production of Royal Enfield motorcycles at a new facility in Vallam Vadagal in Tamil Nadu. Located near Chennai, this is the motorcycle manufacturer’s third production facility.

The plot for the new facility was acquired in October 2014, and it took 15 months for the facility to become functional. The new facility is spread over 50 acres, and has a capacity of producing three lakh motorcycles per annum. However, this is just the first phase of production, and the company can increase the capacity depending upon the demand. The motorcycles produced here will be sold in the domestic market as well as shipped off to the brand’s international markets. 

In the last financial year, Royal Enfield sold 6.67 lakh motorcycles, with their two production facilities in Oragadam, Tamil Nadu, running at full capacity. With the addition of the new facility, Royal Enfield is looking at rolling out 8.25 lakh motorcycles in the current financial year. The company has earmarked an investment of Rs 800 crore towards capacity expansion and development of new products and platforms. The brand’s new motorcycle, based on a parallel-twin platform is expected to be unveiled this year, and will go up against middleweight motorcycles from Harley-Davidson and Triumph.