Royal Enfield’s plans for the 2018-19: Two brand new motorcycles, Plant expansion and exports to Indonesia and Thailand!

With two brand new motorcycles opening a world of possibility, Royal Enfield will be adding 800 crore to their capex account this year, planned expansion and new territories are what this money will buy

By: | Published: April 3, 2018 5:16 PM

2018 has been a stellar year for Royal Enfield, the Himalayan’s painful growth pains sorted, the new 500X and all the media attention one could get from building two twin-cylinder 650cc motorcycles for the Indian market. With the Financial Year 18 firmly in their rear-view folks at Royal Enfield have decided to step up the pace, announcing an expense plan for Rs 800 crore for the next financial year. This capex will include the commencement of construction of Phase-2 of the Vallam Vadagal plant in Tamil Nadu this year.

Speaking on the company’s investment plans, Siddhartha Lal, MD & CEO, Eicher Motors Ltd. said, “Our demand continues to exceed supply, and we continue to see strong growth from all our markets. Therefore, we have decided to expand our production capacity with the second phase of our Vallam Vadagal plant near Chennai, Tamil Nadu. We will also complete construction of our Technology Centre in Chennai this year, and invest further in the development of new products to meet upcoming regulations and to expand our portfolio for our global markets.”

For Royal Enfield that enjoys cult status in markets like the US and UK, the company is looking east. Hoping to capitalize on Southeast Asia’s long-standing motorcycling culture. To further strengthen the brand and accelerate market development activities, Royal Enfield has decided to set up wholly owned subsidiaries in Indonesia and Thailand in 2018-19.

“We continue to strengthen our offerings with new models and variants such as the new Thunderbird X, the Classic Gunmetal Grey, Stealth Black and Redditch series, as well as our soon-to-be-introduced Twins. With a wide distribution network in India, a growing international presence and state-of-the-art capabilities in product development, Royal Enfield is well positioned to grow the middleweight motorcycle segment globally,” said Siddhartha.

In 2018-19, with the first phase of the Vallam Vadagal factory enjoying its first full year of operations, and with productivity optimization at its Oragadam plant, Royal Enfield will have an annual production capacity of about 950,00

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