Royal Enfield, a division of Eicher Motors, has begun commercial operations at its new manufacturing plant at Vallam Vadagal near Chennai in Tamil Nadu.
To address the rising demand for Royal Enfield motorcycles, both in the domestic and international market, the company had invested Rs 800 crore largely towards its expansion at Vallam Vadagal plant, new products and platforms and technical centers Leicester, UK and Chennai, India.
The plant is spread over 50 acres and will be the third production facility for Royal Enfield. The Vallam Vadagal plant in its first phase will start with an installed capacity of 300,000 motorcycles per annum.
The iconic motorcycle manufacturer is planning to produce 825,000 units in 2017-18. In 2016-17, the company produced and sold 667,135 motorcycles, nearing its installed capacity.
The company acquired a 50-acre plot in Vallam Vadagal in October 2014 and construction started 15 months back, and as per the company, they have completed in record time. The capacity of the plant will enable Royal Enfield to meet its next level of growth.
With its focus on capturing the mid-engine capacity motorcycle segment not just in the domestic market, but in the international market, Royal Enfield will look to all three facilities to meet its increasing demand. For Royal Enfield buyers, this could mean the waiting period, if any, will reduce significantly.