Royal Enfield Plans to Increase Production Capacity by Dec 2015

Royal Enfield has decided to increase its production capacity from 36,500 units to 52,000 units per month in near future. This shows RE’s concern for its customers who wait for at least a minimum period of around 5 months to finally ride home their own RE motorcycle.

As we will approach the end of the year, Royal Enfield will increase its annual capacity from 4.5 lac units per annum or 37,500 units per month to 6.25 lac units per annum or 50,000-52,000 units/month.

Besides increasing capacities of its two manufacturing plants in India, the company has also purchased a land worth Rs. 70 crores for the establishment of the third facility, which is situated near the existing ones.

Royal Enfield also plans to open about 85 dealerships by this year that will take the total of RE showrooms to over 500. It is sure that 20 outlets out of the new 85 will be inaugurated in Maharashtra, the company’s largest market.

The year 2015 seems to be pretty auspicious for the company as in January, there was a growth of 43 percent in sales and in February, the rate went up to 49 percent. In the next two months, the company recorded 42 percent of sales over the corresponding period last year. Moreover, sales increased to 47.5 percent for the month of May and June.

Big plans have been made for 2016 that includes the sales of 4,50,000 units during the year with a whole new range of bikes. Royal Enfield is planning to break free from the 346cc to 535cc range of bikes and is working on the development of 250cc to 750cc bikes.