Royal Enfield has experienced a growth of more than 45 percent in the first half of this year, as a result of which the company is planning to increase its production capacity to 6.25 lakh units per annum.
Royal Enfield is having a wonderful time in the Indian two-wheeler market as it was able to register a growth of more than 45 percent in the first half of this year. The company is looking forward to keep up with this pace and is planning to increase its production capacity from the current 36,500 units to 52,000 units a month at its plant in Chennai by December 2015. The company has also acquired more land costing around Rs. 70 crores near the existing plants in order to set up its third manufacturing facility.
The Chennai based bike maker has an average waiting period of about five months, which is quite a lot considering the existing plants can put out 4.5 lakh units every year. By increasing the production capacity to 6.25 lakh units per annum, Royal Enfield will also be able to concentrate more on international markets. In its expansion plans, 85 more sales and service outlets are scheduled to open by December 2015, thereby taking the total number all the way to 500.
Holding a majority stake of 90 percent in the mid-size two-wheeler segment in India that has engine capacities ranging from 250cc to 750cc, Royal Enfield is also contemplating to launch products towards both the bottom and upper end of the same segment, where it currently has no offerings. The company had recently launched the limited edition version of the flagship Bullet Classic model which is inspired by war era Despatch riders. While the Classic 350 contributes to more than 50 percent of Royal Enfield’s total sales in India, the upcoming adventure tourer, Himalayan is expected to be another game changer for the company.
