Chennai-based motorcycle manufacturer, Royal Enfield has plans to open a new factory in Tamil Nadu. To enable this, the company is said to have already acquired some land in Chennai’s Cheyyar town. The new factory will help the manufacturer increase its production capacity as well as incorporate high-scale production of upcoming models.
This is done in order to expand its product portfolio as well as diversify into electric vehicles. Over the course of the next 1-2 years, the brand could invest Rs 1,000 crore or more into this project.
Why?
Royal Enfield has been continuously working on new models which are seen undergoing road testing rounds multiple times. This shows that the bikemaker is planning on a rapid expansion of its product portfolio in the coming 2-3 years. Additionally, the brand’s current lineup is also in tremendous demand as suggested by its record number of sales.
Hence, to cater to its ever-expanding motorcycle portfolio and increasing demand, RE needs to set up a new factory.
New ICE & EV Model Production
Following the debut of the Super Meteor 650, RE is preparing to release the much-awaited Shotgun 650 and Himalayan 450. The Shotgun 650 is expected to be produced in a dedicated facility within the current Vallam Vadagal factory, which serves as the company’s primary ground for IC engine manufacturing. The corporation has also begun work at the Cheyyar plot to enable a smooth transition to EVs once the models are created and ready for launch.
Royal Enfield’s existing factories in Oragadam and Vallam Vadagal now have a combined production capacity of over a million units per year, which is sufficient to handle the increased demand that is expected in the coming few years. The predicted rise in the domestic two-wheeler market, Royal Enfield’s ambitious global development, and its diversification into EVs necessitate that the company makes itself ready and future-capable.
The portion of land in Cheyyar has been purchased to transfer some of its operations from the Thiruvottiyur plant, which has been in operation since 1995 and has become a booming residential region. The factory will be opening and begin production operations post-2025.