Royal Enfield gets ready for expansion

Royal Enfield, which is functioning at near 100 per cent capacity across its three plants, is waiting for the expansion project to get commissioned to consolidate its market base.

Speaking on the sidelines of the launch of two new Royal Enfield motorcycles, Interceptor INT 650 and Continental GT 650, Shaji Koshy, Head, India Business, said, “The expansion initiated as a part of ?800-crore capex will take the company’s manufacturing capacity across three plants at Thiruvottiyur, Vallam Vadagal and Oragadam, all located in Tamil Nadu, to 9,50,000 units per annum.”

He added: “The expansion taken up at the Vallam Vadagal plant, will augment further capacity in a market where we have a share of about 91 per cent in the segment we operate, that is, 250 cc to 750 cc motorcycles.”

Stating that they have gained market share of this size due to their innovative approach and by introducing motorcycles which meet the aspiration of the buyers, Koshy added: “The introduction of these twins at an aggressive price starting from ?2.5 lakh ex-showroom is aimed at enabling the large base of Royal Enfield customers to upgrade to them.”

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