Royal Enfield has commenced production from its all-new 50-acre facility in Oragadam, Tamil Nadu. The plant has a total capacity of 1,50,000 units in the first phase.
The bikemaker has seen a surge in demand over the last two year of over 50 percent, and the current 60-year-old plant produced 12,000 units in March. With both plants put-together, the bike maker will be able to produce a total of 1,75,000 units in 2013.
The new plant will significantly reduce waiting periods on Enfield bikes, and Royal Enfield has already commenced work on expanding the new facility further, with a target capacity of 2,50,000 motorcycles by 2014.
Siddhartha Lal, managing director and CEO, Eicher Motors Ltd. said, “We have re-tooled many of the parts that make up our motorcycles – so that they are of exacting accuracy and finish. The ability to increase capacity fast is a crucial step for Royal Enfield towards meeting our global ambitions. While we are adding new models and new dealerships in the Indian market, we are also working on building our presence globally.”