Demand for Royal Enfield bikes has increased by leaps and bounds in the past few years. The company has witnessed an 80% increase in sales during the last decade with a 70% increase in sales during the current year over previous year’s figures. This prompted the company to sit up and take note of their popularity in the Indian motorcycle market. Recent manufacturing capacity limitations has put some pressure on timely supplies much to the dismay of expectant buyers.
The company will soon solve this problem as was made clear at the Thunderbird 500 launch recently. The new production facility scheduled to come up at Oragadam near Chennai, India will have capacity of producing 150,000 units per annum and will be fully commissioned and ready for enhanced production by March 2013.
Currently the waiting period for Royal Enfield Thunderbird is between 6 to 8 months but once the plant gets underway this waiting period will be reduced to just 3 months. The plant is spread over a 50 acre area and once completed will increase Royal Enfield’s current capacity of 70,000 units to 150,000 units per annum and will be equipped to produce the entire range of Royal Enfield motorcycles.