Royal Enfield in a board meeting has decided to set up a new production facilty at Chennai to produce 9 lakh units per annum
Manufacturer of our favorite “BULLET” aka The Classic, Royal Enfield is all set to increase its production from 4,50,000 to 9,00,000 units a year. For this the company in a board meeting at Eicher Motors, parent company of Royal Enfield, has decided to set up a new production unit at Chennai, Tamil Nadu. The target production of 9,00,000 units annually will be met by 2018 according to company plans.”The board at Eicher Motors accorded in-priciple approval in principal for additional capacity creation at Royal Enfield. The additional capacity will primarily come from the first phase of Royal Enfield’s third manufacturing facility at Valam, Vadagal, Tamil Nadu,” the company said in a statement.
Royal Enfield was facing a downfall on the sales front and the parent company, the Eicher group too was not performing well, until the arrival of Siddhartha Lal, the present CEO of Eicher Motors. Young Siddhartha Lal, a motorcycling enthusiast himself changed the company’s faith. He developed the entire Eicher group as a whole but gave special attention towards Royal Enfield. He amended the bike to be a day-to-day bike. The first step was to correct the inverted rear brake and gearbox. The result is seen in the sales of the company. It has a registered a staggering 71% growth in sales in October 2015 by selling 44,522 units. This is the reason behind Royal Enfield’s decision to increase production.
The company currently sells the Classic 350 & 500, Thunderbird with same options and the newly launched Continental GT. The company is performing exceptionally on the export side too. It has recently entered the Malaysian market. France, Spain, UK are some of the existing markets. Currently, Royal Enfield has two manufacturing units at Thirruvotiyur and Oragadam near Chennai in Tamil Nadu producing 4,50,000 units a year. The company also signed Pierre Terblanche, the designer of many bikes from world leaders such as Moto Guzzi, Ducati, etc. The first launch in his presence will be the upcoming Himalayan in 2016 which currently is under extensive road testing in India. Royal Enfield is also developing a new engine platform other than that of Himalayan.