Royal Enfield is seeing an increase in demand since quite sometime now and its second plant isn’t enough to satiate the hunger of Bullet fans, thus the company is setting up another plant in Chennai.
Royal Enfield is on a roll as the company continues to post record sales every year. The automaker whose cruiser motorcycles have become a fad in India, just recently opened its second plant which has helped reduce the waiting period of its bikes. The British brand which is now owned by India’s Eicher Motors is going to open its third plant in India, with all three factories being in Chennai.
The company’s first plant is in Thiruvottiyur while the second one was opened in Oragadam last year. Both the plants combined give an annual production output of 3 lakh units which is being hiked to 4 lakh units next year. In 2016, Royal Enfield will further boost production to 6 lakh units and the growth is fuelled by demand in both domestic and international markets. Royal Enfield plans to open its third plant in Oragadam and the new facility will just be 10 kms away from its second plant.
The company is investing Rs. 57 crores in its set-up. The new plant will come up at Vallam Vadakal, the same place where Yamaha is also setting up a manufacturing plant. The increase in production capacity will help the Bullet maker prepare for future expansion.
Royal Enfield is looking aggressively at export markets and wants to dominate the middle-weight motorcycle segment the world over. This segment which comprises of bikes between 250cc to 650cc is seeing an increase in competition with Harley-Davidson entering this space with its Street 500 motorcycle, the particular model of the American cruiser is yet to go on sale in the Indian market.
With 300 outlets across the country at the start of the year, Royal Enfield is aiming to touch 400 dealerships by the end of this year while by the end of next year, the automaker will further boost presence to 500 outlets. The company has no product lined up for launch in the near future.