Functioning at near 100 per cent capacity across its three plants, motorcycle manufacturer Royal Enfield is awaiting the expansion project to get commissioned to consolidate its market base.
“The expansion initiated as a part of ₹800-crore capex will take the company’s manufacturing capacity across three plants at Thiruvottiyur, Vallam Vadagal and Oragadam, all located in Tamil Nadu, to 9,50,000 units per annum,” Shaji Koshy, Head, India Business, said.
Speaking on the sidelines of the launch of two new Royal Enfield motorcycles, Interceptor INT 650 and Continental GT 650 here, Koshy said: “The expansion taken up at the Vallam Vadagal plant, will augment further capacity in a market where we have a share of about 91 per cent in the segment we operate, that is, 250 cc to 750 cc motorcycles.”
“We have gained market share of this size due to our innovative approach and by introducing motorcycles which meet the aspiration of the buyers. The introduction of these twins at an aggressive price starting from ₹2.5 lakh ex-showroom is aimed at enabling the large base of Royal Enfield customers to upgrade to them.”
In the last fiscal ended March 31, 2018, Royal Enfield logged total sales of over 8 lakh units, registering a growth of over 23 per cent in the domestic market and exported about 20,000 units, up 25 per cent.
“With two R&D centres, one each in the UK and India, we are well positioned to bring in new models and continue to strengthen our offerings. Backed by these twin offerings, we are also working on several other platforms to sustain the growth momentum,” he said.
“The hardwork the company put in by creating the foundation for new models, and a large network of 870 dealerships, over 9,000 working bays and training academies, have placed us in a situation where we can further consolidate our reach and presence.”
Asked about growing competition coming in the form of revival of the Jawa brand, Benelli, and from Japanese and other manufacturers, Koshy said: “We are not deterred. We welcome more players as the platform we have created for such bikes is set to grow as more and more people buy these motorcycles.”
Koshy said at the heart of every Royal Enfield Continental GT 650 Twin and Interceptor INT 650 Twin is the work done collaboratively by designers across its R&D centres.
With a huge base of loyal Royal Enfield customers in India, the company expects these twins offering them choice to upgrade and continue to be under its fold.