We are sure most of us know how long it takes to get a Royal Enfield Classic motorcycle after booking it. Waiting for your dream set of wheels can be a terrifying experience and the only way that can be addressed completely is by expanding capacity. Royal Enfield did that a few months ago but there is a limit of capacity expansion. With the plant running at full steam, there was no options left for Royal Enfield but to develop a second plant. The Eicher Motors owned company just did and has procured 50 acres of land at Oragadam, near Chennai.
“We have received the letter for the land from the state government. We will start construction immediately after getting the possession. We should be ready with the plant by the first quarter of 2013. With addition of new capacities, we will be able to reduce the waiting periods of our bikes. It is currently about 6-8 months. We will completely shift vehicle production in a phased manner to the new plant. Our plan is to utilise the old plant for developing and producing engines for the bikes. ” Siddhartha Lal, Eicher Motors, MD and CEO, said.
The upcoming Royal Enfield facility will have the capacity to produce upto 1.5 lakh motorcycles every year, when production goes on full steam by March, 2013. The land for the facility has been allotted by the Tamil Nadu government at Oragadam SIPCOT Industrial Park. The company plans to shift all production to the upcoming facility. The complete expansion will cost the RE close to Rs. 350 crore and will help reduce waiting period to zilch on the retro machines. Two new products will also be launched by the company next year, which will expand the portfolio of the Chennai based automaker.