THIS IS RE'S THIRD MANUFACTURING FACILITY AND ITS COMMENCEMENT IS EXPECTED TO PUSH THE BIKEMAKER’S TOTAL YEARLY PRODUCTION CAPACITY TO 8,25,000 BY FY 2017-18
Production has commenced at Royal Enfield's new factory in Vallam Vadagal, situated around 50km from Chennai. The new facility is in addition to its two factories in Thiruvottiyur and Oragadam, both also in Chennai, and is expected to expand the production volume of Royal Enfield bikes. The new factory covers an area of 50 acres and is projected to add 3,00,000 bikes to Royal Enfield's total yearly production. Motorcycles manufactured at this plant will be sold in both domestic and international markets. With the new plant in operation, Royal Enfield projects the annual combined production from its plants to touch 825,000 units in this financial year, a 20 per cent increase over the last financial year. With the new plant, waiting times for the delivery of a new bike to the customer is expected to drop by a significant margin.
Royal Enfield had bought land for the new plant in 2014 and the plant was erected in a span of 15 months. This plant will play a crucial role in Royal Enfield's expansion plans for both domestic and international markets as demand for RE bikes has been rising in both.
Royal Enfield bike sales have seen a steady growth of 55 per cent over the past 6 years. With the growing demand, RE will invest Rs 800 crores towards its new plant’s capacity expansion, developing upcoming products and technical centres in Leicester, UK, and Chennai, India.
Royal Enfield has carved a niche for itself with its retro and touring models. The RE lineup comprises of the Bullet, Classic, Thunderbird, Desert Storm and Continental GT. These bikes are available in engine capacities of 350cc, 500cc, 535cc and 411cc. Last year, Royal Enfield launched their first adventurer tourer, the Himalayan, which was recently updated with fuel injection. Royal Enfield will soon be stepping into the big bike segment with a larger capacity parallel-twin engine. The new platform will rival the likes of Triumph and Harley Davidson.