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Royal Enfield has announced plans to invest $13.8 million in order to double its motorcycle manufacturing capacity.

10th November 2009

Royal Enfield"We 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 years."

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.