Wednesday, November 6

Royal Enfield to invest $100 million in 2019-20

Eicher Motors, the subsidiary of Royal Enfield has said that they are having $100 million investment expenditure plan for Royal Enfield in FY19-20

The investment will use mostly to set up and start the new production plant.

The company said, “the second phase of our Vallam Vadagal plant near Chennai, Tamil Nadu is progressing well and is expected to commence commercial production in the second half of this financial year. The construction of the Technology Centre in Chennai is also nearing its completion”.

“With a wide distribution network in India, growing international presence and building state-of-the-art capabilities in product development, Royal Enfield is well on its way to grow the middleweight motorcycle segment globally in the coming years,” company added.

In FY 2018-19, Royal Enfield announced formation of its wholly-owned subsidiary in Thailand. To further strengthen its presence in the ASEAN region, it recently announced its upcoming assembly operations in Thailand, its first outside of India.

The initial response to Royal Enfield in the ASEAN region, which is one of the largest two-wheeler markets, has been very encouraging, Eicher Motors said in the statement.

With the upcoming assembly operations expected to come onstream in H1 FY2019-20 and plans to further expand dealer presence in the region, Royal Enfield is well poised to fill the gap in the mid-sized segment in the region, it added.