Royal Enfield has announced plans
to invest $13.8 million in order to double its motorcycle
10th November 2009
have so far invested 650 million rupees in our Chennai
plant and will invest a similar amount to raise capacity
to 100,000 units a year from the current 50,000,"
Group Chairman Siddhartha Lal told Dow Jones Newswires.
The company, which currently sells between 4,500
and 5,000 motorcycles a month, expects to sell 50,000
motorcycles in 2009.
While domestic demand will swallow the majority of
new production, export sales are predicted to account
for an increased proportion of sales, according to
Mr. Lal. "From 5% of our total sales now, we
see overseas sales growing to 15% in the next four-five
New models, such as the Bullet Classic 500, benefit
from improved reliability and modern components (e.g.
electronic fuel injection), stimulating demand in
overseas markets. Royal Enfield exported 1,700 motorcycles
between January and September 2009, with the highest
number going to the UK, USA and Germany.
Royal Enfield will be launching a new model, The
Woodsman at the NEC Bike show (27th November –
6th December) and there will even be an opportunity
to test ride one of their motorcycles powered by the
new EFI engine.