Royal Enfield to increase the production of its motorcycles

How many of you have been to a Royal Enfield showroom to book a bike and got shocked to hear about the waiting period for the delivery of your favourite motorcycle? Ask any RE fan and all of them will nod in agreement. But worry no more, as this situation might change soon with Royal Enfield’s new plans.

The parent company Eicher will be investing Rs 600 crore for the coming two years to increase the production of Royal Enfield motorcycles. The money will be spent for different production processes at their manufacturing facility at Oragadam, Chennai. The company plans to boost the production capacity to around five lakh units by 2016 from its plants in India.

Apart from the capacity expansion, the company will also focus on the development of the new global product platforms for the next two years. The manufacturer has increased its production target to 2.8 lakh units, which was 2.5 lakh units previously, owing to the large demand of Royal Enfield motorcycles. 

Royal Enfield will focus only on the mid-sized motorcycle segment for the next five to seven years. This comprises motorcycles ranging from 250cc to 750cc. The number of dealerships in India will also be increased to 500 from a current 300 in the next two to three years. We hope that the manufacturer’s new plans act in favour of the RE fans and enthusiasts.

Source: The Hindu

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