Royal Enfield to expand operations to the UK

Royal Enfield is planning to extend the operations of its motorcycle unit into the UK by setting up a new development centre in the English county of Leicestershire. 

Royal Enfield started out as a British manufacturer making engines as well as firearms, more than 110 years ago, but it had to shut down its last British factory in 1970. With a view of the company’s rapidly increasing demand, the Chennai-based manufacturer has earmarked around Rs 500 crore for its expansion plans. 

It was revealed last year that Royal Enfield had acquired a 50 acre plot in Vallam Vadagal, near Chennai with the aim of ramping up its production capacity. This new manufacturing unit will be located around 10 kilometres from its current facility in Oragadam and will supplement the company’s growth. Since Royal Enfield was acquired by Eicher, the company has been growing at a very significant pace. In 2014, the company achieved its best ever annual sales of over 3,00,000 units and is aiming to breach the 4,50,000 mark, this year. 

Commenting on the company’s plans, Mr Siddhartha Lal, MD and CEO, Eicher Motors Ltd said, “With a view to become the leader in the global mid-sized motorcycling, Royal Enfield will build two new technology centers. The larger one will be at a new 4.5 acre property that we have acquired on Old Mahabalipuram Road in Chennai, and will be operational by Q2 2016; a smaller satellite centre is being set up in Leicestershire, UK, and will be operational by the end of 2015.”