Royal Enfield setting 3rd Plant in TN to double its production

Royal Enfield the iconic  motorcycle brand and the 2-wheeler arm of Eicher Motors, is all geared up to set its third manufacturing plant in Tamil Nadu to double its motorcycle production capacity to around 9 lakh/year by 2018. Currently Royal Enfield is increasing the production of its present two plants near Chennai, to 4.5 lakh units per annum.


With more and more new models coming up from Royal Enfield and thanks to the loyal fans, the company saw a massive 51% increase of its sales. This year RE sold 3,64,178 units compared to 2,40,993 units sold in the previous year same period. Even the export is gaining momentum.

“The board has approved to set up third plant at Vallam Vadagal in Tamil Nadu. It will eventually give us total capacity of 9 lakh units per annum by 2018,” Eicher Motors Managing Director and CEO Siddhartha Lal told reporters.

The additional capacity will primarily come from the first phase of the new plant, the work on which would begin early next year, he added.

Talking about the new models, Lal replied saying “One model would be launched early next year and the other one in 2017”.

Royal Enfield is also aiming to expand its sales network across the country. “By the end of the year, we plan to have 500 dealerships across India in a single unified retail identity,” Lal said.

In the last quarter, Royal Enfield had taken some significant steps as part of its growth strategy of leading and expanding the mid-sized motorcycle segment (250-750cc) globally. Royal Enfield currently sells its popular models like Bullet, Classic, Thunderbird and Continental GT.


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