Royal Enfield has been growing at a staggering rate year on year. When we consider the market environment then the growth is nothing less than miraculous. The position Royal Enfield has attained since shifting to the UCE (Unit Construction Engine) in 2009, has become envy of other automobile manufacturers the world over. Moreover, with the plans to make 7 lakh Motorcycles a year by 2017, we might have only seen the tip of Royal Enfield's growth till now.
Just last week we reported that Royal Enfield has roped in the legendary motorcycle designer Pierre Terblanche, and now news is coming that Royal Enfield is planning to open up a new plant at Chennai. Royal Enfield has now acquired a 50 acre plot at an investment of Rs.57 crore at Vallam Vadakal near Chennai to set up a brand new manufacturing plant. The upcoming unit will be the Eicher Motors owned manufacturer’s third factory in and around Chennai itself, apart from India, and second one at the Oragadam industrial belt.
Royal Enfield reported a 47.45 per cent increase in its total sales in October 2014 at 26,039 units as compared to 17,659 units in the same month last year. Domestic sales have also increased by 47.4 per cent at 25,510 units last month as against 17,306 units in October 2013, the company said in a statement. Exports during the month stood at 529 units as against 353 units last year, up 49.85 per cent.
The proposal for a new plant is a part of its domestic/exports expansion strategy. As a part of this strategy, it will also bolster its dealer network to about 400 outlets by the end of 2014, and 500 outlets by 2015. Though we wonder, with Oragadam facility still not completely utilized for production, when will this new RE plant will go in production.