Royal Enfield to invest Rs 600 crore in new plant, tech centre and products

Royal Enfield will be investing  Rs 600 crore in its two wheeler business for financial year 2017, as it will create higher output to meet the strong demand. The manufacturer is also investing the money into the upcoming tech centre and new products.

According to a source, the investment will be made in the upcoming third plant in Vallam Vadagal on outskirts of Chennai. This plant is expected to help the company reach a production capacity of 9 lakh units by 2019. The UK tech centre investment is expected to help the company launch one major product and few new variants for the next couple of years.

Siddhartha Lal, MD of Eicher Motors was quoted saying, "Himalayan has done exceptionally well. We are delighted with its performance and it is growing in numbers. Going ahead, we will have one big product this financial year, we will be launching something significant next year, we will have variants as well. At Royal Enfield level, this financial year, we are going to be investing around Rs 600 crore, a good chunk of this. The largest will be in the new plant, followed by UK tech centre, followed by products."

On the global expansion of Royal Enfield brand, the company has said it will be expanding its footprint both in developed markets as well as emerging markets. The company plans to set up about 15-20 new stores in Europe next year and it will be looking at building its presence in the markets of Colombia, Indonesia and Thailand.

To see pictures and know more about the upcoming 750cc Royal Enfield Continental GT that was spotted testing in the UK, click here.

Source - ETAuto