Eicher Motors to double manufacturing capacity of Royal Enfield to meet demand

Royal Enfield is continuing to expand its retail footprint in India. To meet the robust demand, Eicher Motors plans to double manufacturing capacity of Royal Enfield to 9 lakh units per annum by 2018.

"Royal Enfield continues to have a strong demand for its products and has a very strong order book. We are on track to produce 4,50,000 motorcycles by the end of this year," Eicher Motors MD Siddhartha Lal told PTI.

The additional capacity will primarily come from the first phase of Royal Enfield's third manufacturing facility at Vallam Vadagal inTamil Nadu, the company said in a statement.

This will take the combined capacity of Royal Enfield to 9,00,000 motorcycles annually by 2018, it added.

"By the end of the year, we plan to have 500 dealerships across India in a single unified retail identity," Lal said.

Royal Enfield also announced its first direct distribution subsidiary outside India, in North America in August this year.

"North America is a nodal market for motorcycles and one of the biggest in value terms. Given its critical importance to our global ambitions, we have decided to operate our wholly-owned subsidiary there," Lal said.

Headquartered in Milwaukee, Wisconsin, the Royal Enfield team will be led by Rod Copes, President Royal Enfield North America, and will directly conduct all market development and sales activities.

"We will open our first exclusive branded retail store in the United States in Milwaukee in first half of 2016", Lal said..

(Image credits: Indiatimes)