Eicher to expand Royal Enfield plant capacity

June 18th, 2008 - 8:04 pm ICT by IANS  

Chennai, June 18 (IANS): Riding the increase in sales of its lifestyle bikes Bullet, Thunderbird, and Electra, Eicher Motors Ltd will increase the production capacity at the Royal Enfield division, a top official said. “We will be investing Rs.250 million to expand the Royal Enfield’s Chennai plant capacity by 20,000 units to 60,000 per annum,” Royal Enfield chief executive R.L. Ravichandran told the media here Wednesday.

Launching a new model Thunderbird Twinspark 350cc (priced at Rs.130,000), he said the company is targeting a 20 percent growth at its Royal Enfield two-wheeler division this fiscal.

Last year, the division sold 39,00 units - domestic and exports put together. “We exported 26,000 vehicles,” said Eicher Motors managing director and chief executive Siddhartha Lal.

Ravichandran said while the traditional Royal Enfield bikes sported external clutch and gearbox, the new UCE will have the engine, clutch and gearbox integrated in a common crankcase space.

“By 2010 other models - Machismo, Electra and the Bullet 350 - will be powered by UCE,” he added.

Royal Enfield will also launch the UCE 500 electronic fuel injection (EFI) at auto shows in Cologne, Germany, and Birmingham, UK.

Currently, the division exports Bullet Electra EFI and is the first two-wheeler manufacturer in India to produce and sell a Euro-III-compliant motorcycle.

Queried about the company’s strategy to meet the entry of high-powered big two-wheeler brands, Lal said: “We don’t expect the new players affecting our market. On the other hand it would only grow the overall market size.”

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