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On Sunday, India’s iconic cruiser bikes manufacturer, Royal Enfield has commercially started production at its new production facility at Vallam Vadagal near Chennai in Tamil Nadu. The Royal Enfield’s third manufacturing plant in the row is spread over an area of 50 acres and is claimed to produce 300,000 motorcycles per annum in the first phase.
As estimated, the combined production of all the three plants in 2017-18 will be around 825,000 units. That was 667,135 motorcycles (produced and sold) in 2016-17, of its installed capacity.
As reported, this RE’s third manufacturing facility is constructed in a record time of 15 months and ready to serve the company. The Chennai based auto major had acquired a 50-acre plot in Vallam Vadagal, back in 2014. With the production capacity of this plant, the Royal Enfield will be able to complete the projected next level of growth.
Read Also: Royal Enfield 750cc Spied Again, This Time with ABS
Other than this, the company is also pondering to invest a huge amount of Rs 800 crore in 2017-18, in order to expand Vallam Vadagal manufacturing capacity, introducing new products and platforms, and technical centers in Leicester, UK, and Chennai, India. As per the officials, all the amount will be invested through internal accruals.
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