Royal Enfield commences production at the Vallam Vadagal plant

28/08/2017 - 12:07 | ,  ,   | Praveen M

Royal Enfield has started production at its third plant, in Vallam Vadagal, Tamil Nadu.

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With the third plant functional, the company plans to produce 8.25 lakh motorcycles this financial year.

Its parent company, Eicher Motors, said in a statement that the 50-acre plant will manufacture bikes for domestic and international markets. The facility’s annual production capacity is 3,00,000 motorcycles in the first phase. Royal Enfield has sold 6,66,493 units in the previous financial year, and aims to manufacture 8,25,000 motorcycles in the current financial year.

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According to the statement, the plot in Vallam Vadagal was acquired in October 2014. It took a record 15 months to complete construction. The brand has set aside INR 800 crores for new products, production expansion at Vallam Vadagal plant and for technical centres in UK and India. By April 2019, the new technology centre in Chennai, Tamil Nadu will be complete and fully occupied.

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The new manufacturing plant will produce 3 lakh motorcycle a year in its first phase.

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The brand enjoys a 95 percent market share in the mid-size motorcycle segment (250 cc – 750 cc) in India. The new plant will help the company reinforce its position in the market amidst the upcoming models from Triumph-Bajaj, TVS and BMW.

The brand’s flagship 750cc bike is slated to be launched by the end of this year, in line with the company's plans of introducing a new motorcycle every year till 2018.

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