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Premium motorbike-maker Royal Enfield, a unit of Eicher Motors, said on Thursday that due to an unanticipated high demand for its products, it is planning to double annual capacity to 1.1 lakh units in the next 2-3 years.

The company will invest about Rs 30-40 crore every year for the expansion of its Chennai plant, which has at present an annual production capacity of 55,000 units a year.

Dr Venki Padmanabhan, COO, Royal Enfield, told Business Line that the expansion plan has been made keeping in view of the rapidly growing demand for its niche products, which is leading to a waiting period for many of its models.

“We thought that new Enfield models would have a very small demand, with the Classic we expected to do 200 units a month, surprisingly the demand is close to a 1,000. We're building both capacity and R&D capability. In the next 2-3 years we'll be doubling capacity,” he said.

Waiting period

He added that the Classic 350 and 500 models have waiting periods of up to 9 months, while to own a Thunderbird 350, one would have to wait about three months.

On new products, Dr Padmanabhan said that a 500cc higher power Thunderbird is under development, though the launch is still two years away.

The company is also developing other bike styles, like the high-end ‘Café Racer', besides a larger 750cc engine. It has also started exports to new markets like the US.

Source: The Hindu Business Line : Royal Enfield to double capacity in 2-3 years

sunilg

News approved.

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frankpilli

At last a higher capacity engine is on the cards from RE, and definitely a V twin.

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jd666

interested in the thunderbird 500 news... also if there is a genuine V-twin at 2.5lakhs to counter the HDs!

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enfro

yupps..a v twin..Amen

saj

cafe racer..
i think enfield already has a model in other markets other than in India.

750cc may give some competition to the HD.




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aargee

Exactly my thoughts too; IMO, RE should've done this even before HD's launch & they would've captured the market giving tough time for HD. Man, I'm ready for even 3 Lakhs & twin 350 cylinders & I can still accept the oil leaks & quality niggles.

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bprags

I just dont understand why they need another 2 years just to plonk in the classic 500 engine into the Thunderbird chasis

need4torque

Raghu, one year to plonk in the engine and another year to find out from where all it leaks oil!
On a serious note, I do hope the 750cc is a multi cylinder engine.

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