Eicher Motors is planning to increase its two-wheeler division Royal Enfield’s production capacity by more than double to 2.5 lakh units annually by 2014. It has taken this decision considering strong demand for its products. During last year, it had produced and sold a total of 1.13 lakh units of two-wheelers.
The company has begun operations at its second manufacturing facility at Oragadam near Chennai. It is investing Rs 150 crore for first phase of the plant, spread on 50 acres of land. During the January-March quarter, Royal Enfield sold a total of 34,736 units as against 23,899 units in the same period last year, up 45.34%.
