Royal Enfield to spend Rs 800 crore on capacity expansion, new products in FY19

- Royal Enfield to spend Rs 800 crore on its FY19 capex

- Will use to capex to fun its Phase 2 of Vallam Vadagal plant, technology center, new product development

- Will launch the new 650s - Interceptor 650 and Continental GT650 this year

Royal Enfield has announced its capital expenditure of Rs 800 crore for FY 2018-2019. This capex will go towards the construction of Phase 2 of its Vallam Vadagal plant in Tamil Nadu.

Using this money, the company will also complete its technology centre by this year. Some of the money will also be used to develop new products that will meet the upcoming BS-VI emission norms. The Chennai-based manufacturer has also announced to set up its own subsidiaries in Indonesia and Thailand in the current financial year. 

Royal Enfield saw a whopping growth in the last financial year. Lack of competitors in the segment and excellent brand recall has made Royal Enfield one of the fastest growing bike makers in India. Its highest selling model, the Classic 350 contributes close to 70 per cent of overall sales. But with the increase in disposable income and the need to own a big bike made the Chennai-based develop new 650cc parallel-twin range. 

Royal Enfield will launch the Interceptor 650 and the Continental GT 650 in India this year. It is expected to come with an attractive price tag as it’s manufactured in India. While it won’t bring the volumes like the other Royal Enfield products, it will surely help the company build a strong presence in the growing modern-retro segment.