Royal Enfield, a division of Eicher Motors India, has suffered a production loss of 4,000 motorcycles in November and 7,200 in December owing to the floods that affected Chennai and nearby areas. Prima facie there seems to be no loss reported of plant, machinery and equipment with all employees safe and secure.
According to a press statement issued by Royal Enfield, the loss of production is due to the factory being shut down from December 1 to 6 leading to a production loss of 7,200 units. There was a production loss of 4,000 units reported in the last week of November, also due to the rain. Royal Enfield says that though the production has resumed to nearly 50 per cent this week and is expected to go to 100 per cent soon, the supply chain is yet to recover from the damage. The exact extent of losses can be ascertained only after the factory resumes normal routine.
Royal Enfield has been ramping up their production to match the ever increasing demand for the Indian marque as it gained cult status over the past few years. The waiting periods for the Royal Enfield Classic and Thunderbird motorcycles had extended up to nine months. With continuous efforts, the Chennai-based bike maker managed to get the waiting periods down to 6 to 8 weeks for the 500cc motorcycles and 8 to 10 weeks for the 350cc motorcycles. As a result of the loss of production, the waiting periods will spike and may go up to three to four months according to the dealers.
