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Eicher to Ramp Up Enfield Output with Rs 600 Crore Investment

Automobile maker Eicher will ramp up bike production facility of its flagship two wheeler model Royal Enfield with an investment of `600 crore.

Published: 14th February 2014 06:00 AM  |   Last Updated: 14th February 2014 01:45 AM   |  A+A-

Enfield

Automobile maker Eicher will ramp up bike production facility of its flagship two wheeler model Royal Enfield with an investment of Rs 600 crore.

The company will now look to complete expansion work at the Oragadam plant (Chennai) to 5 lakh units a year by end of  2015. It produced a total of 1.78 lakh units in 2013.

Company MD and CEO Siddhartha Lal said that they will also look at developing new platforms and launch new bikes from 2016. The company will continue their focus on the 20+ category of bikes. Eicher recently launched the Continental GT Cafe Racer bike in India.

“Last year, we had set a production target of 2.5 lakh units for 2014, but now it has been revised to 2.8 lakh units considering the demand for our bikes in the market,” Lal said. The investment will be channeled towards capacity expansion and developing Research and Development infrastructure, he added.

On dealership expansion, he said that they have a close to 300 dealers at the moment and this will be taken to 500 within the next few years.

Meanwhile, Eicher is looking to create a new segment of four wheeler vehicle.     “We are trying to create a new segment in personal four wheel space. It is an on road personal vehicle, a new segment, which we are trying to create,” agencies quoted Lal as saying.



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