Royal Enfield will focus on improving quality of their products and try to solve all the problems associated with their motorcycles. With the company having an infamous reputation for quality issues and lack of reliability, this is a very important step taken by Royal Enfield to ensure customer satisfaction. Royal Enfield sold more than 1 lakh units in 2012, which is the first time they have done so. They also plan to launch two new bikes in 2013.
Royal Enfield has invested Rs. 150 crores in their new factory at Oragadam, Chennai. This is the company’s second manufacturing unit which will have the most modern and high tech state of the art equipment and machinery for building bikes. This new factory too will play a major role in improving the quality of their bikes. Royal Enfield will improve the quality of raw materials going into manufacturing. The company will ensure higher quality of outsourced components and have more stringent quality control standards.
The new factory will give Royal Enfield a total production capacity of 1.5 lakh units per year which will help the company achieve the aim to increase their sales to 1.5 lakh units this year. Royal Enfield will launch two new bikes this year too. The highly coveted Café Racer bike from the 2012 Auto Expo and a new Bullet 500 will be launched. The Bullet 500 will be the standard Bullet with the popular 500cc fuel injected engine (27 BHP, 41.3 Nm) from the Classic 500 and Thunderbird 500. The Bullet 500 is already sold in international markets. Both these products will give quite a push to the sales of Royal Enfield bikes.
Royal Enfield recorded an amazing 52 percent growth in sales in 2012 as compared to 2011. The company opened 63 new dealerships all over the country which increases the total number of dealerships in India to 249 outlets. New products, better dealer and service network and more reliable bikes will definitely help Royal Enfield get more volumes in the niche Indian lifestyle motorcycle segment.