Royal Enfield has started commercial production from its new manufacturing facility at Vallam Vadagal near Chennai, Tamil Nadu, India. Spread over 50 acres, the Vallam Vadagal plant will be Royal Enfield’s third manufacturing facility,and will manufacture Royal Enfield motorcycles for India and international markets.
In FY 2017-18, the combined production capacity from all the three plants is planned to be 825,000 units. In FY 2016-17, Royal Enfield produced and sold 667,135 motorcycles, nearing its installed capacity.
Royal Enfield acquired a 50 acre plot in Vallam Vadagal in October 2014 as the site for its third manufacturing facility. The construction of the facility started 15 months back and has been completed in record time. The new facility has been benchmarked to the highest level of quality and productivity. The capacity in this facility will enable the company to meet its next level of growth.
Royal Enfield’s sales have grown at a compounded rate of more than 55% over the past 6 years. In FY 2017-18, the company says it plans to expand production at Vallam Vadagal, and invest in new products, platforms and technical centers in Leicester, UK and Chennai, India. The company says the investments will be funded through growth of their existing brands and new products.
A company spokesman also told MPN that the much anticipated Himalayan Adventure Bike would be delivered to dealers in the U.S. some time in December.