Royal Enfield to get investment of Rs 600 crore from Eicher

Siddartha Lal, CEO of both Royal Enfield and Eicher has made an announcement about the parent company’s investment plans in the growing Royal Enfield brand of Rs 600 crores.

Informing about the company’s investment plans he said, “Royal Enfield has been investing in building strong foundations across all areas of its business. We will be investing Rs 600 crore towards product development, setting up of the two technical centres, in Leicestershire, UK and Chennai, India, enhancing our manufacturing capacity and market development activities across geographies.”

Lal also revealed the company plans to manufacture around 6,75,000 motorcycles in 2016-17, which will be a near 32 per cent jump from the total of 5,11,611 units manufactured in 2015-16 and a whopping 100 per cent rise from the 3,36,801 units produced in 2014-15.

“Our immediate business outlook remains strong and Royal Enfield continues to grow consistently, competitively and profitably towards leading and expanding the mid-sized motorcycle segment globally,” added Lal.

Royal Enfield has recently strengthened its retail footprint in India with the addition of 145 new dealerships, taking it to 500 plus stores in the country currently. In terms of international development, Royal Enfield opened its first direct distributor  in Milwaukee, North America. It also opened exclusive stores in cities like London, Paris, Madrid, Dubai, Bogota and Medellin. It also entered two of the biggest two-wheeler markets in the world, with the launch of its first exclusive stores in Bangkok, Thailand and Jakarta, Indonesia.

At the moment, there are reports of Royal Enfield developing a 600-650cc cruiser for the foreign markets. Read more about that here.

Source - Autocar Professional