Royal Enfield is facing a demand-supply problem with the Classic 350 and has been urged to stop bookings for the Classic 350. The Classic 350 has received 2000 orders, which is far in excess of what the company had expected. Bookings were closed last month and will stay closed for the rest of the year. While bookings for the Classic 500 are still open, deliveries can take up to six months due to the long waiting list as 3,000 customers have ordered the Classic 500. The company will only begin to take new orders once the present order book has been fulfilled.
Royal Enfield makes 300 motorcycles of each model for the domestic market every month at its factory in Thiruvottiyur in Tamil Nadu. An additional 350 bikes a month are exported to Europe and the US. The company plans to increase its capacity to 100,000 units a year by 2012, a growth of 67% from the 60,000 bikes it aims to make in 2010. Royal Enfield has also beefed up its number of dealers to 160 across the country.
