Royal Enfield, the oldest motorcycle manufacturer in the world, is all set to open a new plant in Vallam Vadakal near Chennai.
The company has acquired 50 acres of land at a cost of INR 57 crore in the Oragadam manufacturing corridor. This is the same place where Yamaha is also setting up a new plant.
This new plant by the makers of the iconic "Bullet", is their third plant in Chennai and the second plant in the Oragadam corridor.
The two plants combined make 3 lakh units of motorcycles per year and are ramping up their production to 4 lakh units in 2015 and up to 6 lakh units in the following year.
Siddhartha Lal, the Managing Director and CEO of Eicher Motors said, "This prepares us for future expansion to meet the growing demand of our motorcycles worldwide."
Details regarding proposed investment, capacity and job oppurtunity have not been revealed yet.
The new plant will increase the sales of motorcycles in the domestic as well as export market. The company is also looking forward to expand its dealer network to 400 by the end of this year and to 500 dealers by the end of 2015.
Royal Enfield recorded a 76 percent hike in sales, selling 2.41 lakh units during the period between January to September 2014. The company is expected to end the year, selling 3 lakh units in the domestic and international market.