Royal Enfield to invest Rs 700 crore in 2019-20: Eicher Motors has announced a capital expenditure plan of Rs 700 crore for Royal Enfield in the current financial year. The capex will be used for the construction of the technology center, phase 2 of the Vallam Vadgal plant in Tamil Nadu and for the development of new platforms and products. In addition, for 2019-20, Royal Enfield has planned to produce 950,000 motorcycles, Eicher Motors said in a statement on Monday.
Royal Enfield to invest Rs 700 crore in 2019-20- To Produce 9.5 Lakh Motorcycles
“This year, Royal Enfield will focus on improving our product development capabilities and working towards new global platforms as well as the upcoming transition to BS-VI emission norms.”Siddhartha Lal, MD, and CEO of Eicher Motors said.
The second phase of our Vallam Vadagal plant near Chennai, Tamilnadu is progressing well and is expected to start commercial production in the second half of this financial year. He said that the construction of a technology center in Chennai is also going to be completed.
“With an extensive distribution network in India, the growing presence of internationally and the creation of state-of-the-art capabilities in product development, Royal Enfield is well to develop the world’s middleweight motorcycle segment in the coming years,” Lal said. For the latest updates, you can visit www.indiatimelines.com.
In FY 2018-19, Royal Enfield announced the formation of its wholly-owned subsidiary in Thailand. In order to further strengthen its presence in the ASEAN region, he recently announced his upcoming assembly operation in Thailand outside of India.
Eicher Motors said in the statement that the initial reaction of Royal Enfield to the ASEAN region, which is one of the largest two-wheeler vehicles, is very encouraging.
The upcoming assembly is expected to come forward in H1 FY2019-20 and plans to further expand the dealer’s presence in the field, well prepared to fill the gap in the middle size segment in the Royal Enfield area.