As part of its expansion plans Royal Enfield is looking at increasing its annual production to 1.5 lakh units and they have invested in a new production facility in Chennai to this end

It's good news for all of the country's thumper fans as Royal Enfield has announced its eagerness to increase the production capacity of its motorcycles in 2013. With demand for its bikes at an all time high it was necessary for the Chennai based two-wheeler manufacturer to boost its production. For this very reason the company has invested Rs 150 crore in a new facility in Chennai and anticipates production to start within three months. With the addition of new facility Royal Enfield expects to increase its production capacity beyond 1.5 lakh units per annum. 

Speaking on the occasion, Siddarth Lal, MD & CEO (Eicher Motors Ltd) said, "With our new plant at Oragadam (near Chennai) coming on-stream within the next few months, in 2013 we will have a total combined capacity of 1,50,000 units. We are already working to increase it beyond that by 2014."

It is a welcome move by Royal Enfield since consumers who so far have wanted to purchase their motorcycles have had to deal with waiting periods as long as six to eight months and with this hike consumers can expect the waiting period to reduce considerably. Currently, the company manufactures its bikes from the Tiruvottiyur plant in the outskirts of Chennai.

Although RE bikes fall in the niche bike segment sales are going strong and the company reported an impressive 50 per cent growth in the past two years. The recently launched Thunderbird 500 has been well received by consumers and the company also plans to introduce new models by the end of the year.

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