This is the company’s third plant in India with which Royal Enfield’s combined production capacity will reach an astounding 8.25 lakh units per year.
The new manufacturing facility is situated at Vallam Vadagal at the outskirts of Chennai, and spread over 50 acres. In Financial Year 2016-17, Royal Enfield produced and sold 6.67 lakh motorcycles, nearing its total capacity. The new plant’s capacity will enable the company to meet its next level of growth.
The company’s retro-styled motorcycles have caught the palate in India and various international models. In a statement, Royal Enfield have disclosed that their sale has grown at a compounded rate of over 55 per cent over the past 6 years. In FY 2017-18, the company plans to invest Rs 800 crore, largely towards capacity expansion at Vallam Vadagal, new products and platforms, and technical Centres in Leicester, UK and Chennai, India.
Currently, Royal Enfield sell five models which are offered in a number of variants in India, ranging from Rs 1.15 lakh to Rs 2.10 lakh. These include the popular Royal Enfield Classic 350, the Himalayan 400 and the Thunderbird 500.