~ The state-of-the-art facility starts with an installed production capacity of 300,000 motorcycles per annum in the first phase ~
Chennai, August 26 2017: Royal Enfield, the global leader in mid size motorcycles, today started commercial production from its new manufacturing facility at Vallam Vadagal near Chennai, Tamil Nadu, India. Spread over 50 acres, the Vallam Vadagal plant will be Royal Enfield’s third manufacturing facility,and will manufacture Royal Enfield motorcycles for India and international markets.
In FY 2017-18, the combined production capacity from all the three plants is planned to be 825,000 units. In FY 2016-17, Royal Enfield produced and sold 667,135 motorcycles, nearing its installed capacity.
Royal Enfield acquired a 50 acre plot in Vallam Vadagal in October 2014 as the site for its third manufacturing facility. The construction of the facility started 15 months back and has been completed in record time. The new facility has been benchmarked to the highest level of quality and productivity. The capacity in this facility will enable the company to meet its next level of growth.
Royal Enfield’s sales have grown at a compounded rate of over 55% over the past 6 years. The order book continues to be strong and there is a large unmet demand. In FY 2017-18, the company plans to invest Rs 800 crores, largely towards capacity expansion at Vallam Vadagal, new products and platforms, and technical Centres in Leicester, UK and Chennai, India. This investment will be funded through internal accruals.
About Royal Enfield:
The oldest motorcycle brand in continuous production, Royal Enfield made its first motorcycle in 1901. A division of Eicher Motors Limited, Royal Enfield has created the mid-sized motorcycle segment in India with its unique and distinctive modern classic bikes. With its new manufacturing base in Chennai, India, Royal Enfield is able to grow its production rapidly against a surge in demand for its motorcycles. With more than 50% growth every year for the last 5 years, Royal Enfield is fast becoming a very important player in the global mid-size motorcycle market and is working towards re-inventing this space with motorcycles that are evocative and engaging and great fun to ride.
Royal Enfield’s product line‐up in India includes the Bullet, Classic and Thunderbird models in 350 and 500cc displacement along with Continental GT 535cc café racer and the purpose built Himalayan powered by the new LS410 engine. Royal Enfield operates through 17 company-operated stores and 705+ dealers in all major cities and towns in India, and exports to over 50 countries across the world including the USA, UK, several European and Latin American countries, as well as the Middle East and South East Asia.
Royal Enfield also organizes and supports many motorcycling events and rides globally, more prominently the Rider Mania – an annual gathering of Royal Enfield riders from all over the world to the lovely beaches of Goa, and the Himalayan Odyssey, the most arduous motorcycle ride over some of the toughest roads and highest mountain passes in the Himalayas. Royal Enfield also conducts the popular ‘One Ride’ where people around the world ride out on their motorcycles on the first Sunday of April.