Royal Enfield expanding capacity

Royal Enfield has announced expansion plans spread over the next 2-3 years at the cost of Rs. 30-40 crore. The niche bike maker wants to double its capacity to be able to cater to the growing demand in India.

Royal Enfield’s growing popularity in the Indian market had led to long waiting periods for its bikes and the company wants to cater to this growing demands. The investment will see their annual capacity rise from the current 55,000 units to 1.1 lakh units. Some funds will also be devoted to its R&D department for improving its product range.

The company also revealed that it is working on a 500cc Thunderbird which should launch in 1-2 years time. It is also working on a high-end ‘Cafe Racer’ 750cc bike which will be primarily exported.