Royal Enfield will increase their production capacity by the end of this year in a bid to cater to the high demand of motorcycles. This will, in a way, also help in reducing the waiting period for these bikes.
The manufacturer currently produces around 36,500 units of motorcycles per month, which will be boosted to 50,000-52,000 by December 2015. This means the company plans to produce around 6.25 lakh units per annum from a present installed capacity of 4.5 lakh units per year. Apart from this boost in production capacity at their two manufacturing facilities, the company has also bought more land to set up another plant with an investment of Rs 70 crore.
The Royal Enfield motorcycles have seen an acute demand lately and the sales charts for the company are setting new records day by day. However, the company has not managed to cater to the huge demand and there has been a waiting period of five months on an average for the delivery of a motorcycle. To address this issue the company aims to increase their production capacity and will also expand its dealership network in our country. They plan to open 85 more outlets in India taking the count up to 500.
Let us hope the company's new strategy works well in favour of the consumer who intends to buy a new Royal Enfield motorcycle and doesn't want to wait for long to get the delivery of his new Bullet.
