Royal Enfield’s third production facility under construction

Eicher Motors, the parent company for Royal Enfield announced that the legendary Indian bikemaker is setting up its third production plant. The new Royal Enfield manufacturing facility will be located in Vallam Vadagal near Oragadam. According to Royal Enfield officials the new manufacturing plant will increase its production capacity from the existing 4.5 lakh units to 9 lakh units by 2018 a tremendous jump of 50 per cent. Currently Royal Enfield has two production facilities at Thiruvottiyur (TVT) and Oragadam in Tamil Nadu. Earlier this year, it had acquired 50 acre land in Vallam for Rs 57 crore and this is where the third plant will be built. The company has recently concluded second round of expansion at its Oragadam plant. The construction at the new plant will start early next year. 

The expansion doesn’t really come as a surprise as Royal Enfield have been clocking healthy sales figures in the domestic market and are the highest gainers with respect to sales growth in the Indian two-wheeler market. It also has plans to increase its global footprint and has inaugurated new showroom in the European region and Siddhartha Lal, MD and CEO Eicher Motors has also moved to London to strengthen its motorcycle business overseas market. This year Royal Enfield opened exclusive stores which are in Dubai, Paris, Madrid and four exclusive stores in Columbia. Currently Royal Enfield has over 400 dealerships overseas of which there are 10 exclusive brand stores. In India, by the end of this year it will be 500 dealerships from current 392. Also Lal confirmed that it would be launching a new motorcycle which is the Himalayan adventure tourer in early 2016 (Read about it here) and that they are working on one more new platform that shall be launched later. The new platform from Royal Enfield is expected to be its parallel twin engine which we feel will be unveiled as a concept at the 2016 Auto Expo in Delhi.