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The legendary two-wheeler manufacturer, Royal Enfield is considering an increase of production capacity in order to fulfill customer’s overwhelming demand on time. The expansion plans include an increase of annual production capacity to more than 1.5 lakh units in 2014. Apart from increasing the production capacity, the manufacturer is also setting up a new production facility near Chennai. The company has invested Rs. 150 crores for the new plant and expects to start production within two months.

Eicher Motors Managing Director CEO, Siddhartha Lal says that the new Oragadam plant near Chennai will start production in a few months of time and will have a total combined capacity of 1,50,000 units this year, the company is aiming to go beyond that mark by 2014. The motorcycle maker is experiencing a growth of about 50 percent over the last two years and will invest accordingly to continue the momentum of growth. Currently, Royal Enfield produces motorcycles at its Tiruvottiyur facility in Chennai.

With the new production facility, Royal Enfield aims to eliminate the waiting period of its motorcycles significantly, which is currently standing with 6-8 months of waiting. This clever move has been taken by the manufacturer in order to enhance its presence and position in the niche bike segment in India. Royal Enfield has recently tasted flavor of success with the introduction of the new Thunderbird 500 and looks promising to offer new and improved products soon with reduced waiting period.