Royal Enfield will expand its manufacturing capacity in Tamil Nadu by investing INR 500 crore. The infusion is part of the memorandum of understanding (MoU) between the two-wheeler brand and the state government that will extend the fiscal and monetary incentives to Royal Enfield. The company had signed a pact under which it was to invest INR 1,500 crore over five years starting from May 2016. Royal Enfield has already invested INR 1,000 crore while remaining INR 500 crore would be added by 2021.
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The capital will be used to expand the capacity of its three facilities at Thiruvottiyur, Oragadam and Vallam Vadagal. Royal Enfield targets to expand its reach in the global markets. The company’s latest products, the Interceptor INT 650 and the Continental GT 650 were launched in several markets across the globe late last year. The 650 Twins were first launched in the US market, followed by Australia, and Thailand. The company recently launched its adventure tourer, the Himalayan in the Brazilian market at 18,990 Brazilian Real, (approximately INR 3.59 lakh).
The added capacity at its plants would enable Royal Enfield to cater to the increasing demand, both in domestic and international markets. The company is also reportedly planning to set up the technology centre along the Old Mahabalipuram Road (OMR) in Chennai.
Readers know that the Chennai based two-wheeler brand has aggressive plans to update and expand its portfolio post the BS-VI compliance. Eicher Motors’ CEO, Siddhartha Lal had confirmed in an interview that the company is readying new product line up that would arrive with the enforcement of the emission norms in April 2020. Royal Enfield reportedly plans to introduce motorcycles on four new platforms – P, J, Q and K.
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The P architecture underpins the 650cc motorcycles and the next product based on the platform would arrive in late 2020 or early 2021. The Q and K architecture would underpin bikes that target to compete against higher displacement models. The J architecture would underpin Royal Enfield’s existing products such as the Classic, Thunderbird, Bullet, and Himalayan.
[Source: PTINews.com]
