Royal Enfield to invest USD 100 million this FY – For R&D of new motorcycles

The capex will be directed towards completion of construction work of the Technology Centre, Phase-2 of Vallam Vadagal plant in Chennai, Tamil Nadu and development of new platforms and products

Royal Enfield Bobber concept 838cc machine.

Eicher Motors has announced investment of Rs.700 crores (USD 100 million) for Royal Enfield in the current financial year (1st Apr 2019 to 31st Mar 2020). This capex will be used for the ongoing construction work at the company’s Technology center at the Vallam Vadagal plant in Tamil Nadu and also for the R&D of new platforms and products. The company has also set production plans at a total of 9.50 lakh motorcycles in the current financial year. Last fiscal they missed their target, as sales stood at 8.05 lakh, instead of the aimed 8.75 lakh.

2019-20 will be a year when all automakers in the country will be paying more emphasis on moving towards BS6 emission norms and enhancing safety features in each of their upcoming products. Royal Enfield is also among these automakers with this added investment directed towards enhancing capabilities in these areas.

Eicher Motors MD & CEO Siddhartha Lal has also said that special emphasis will be paid towards strengthening the company’s product development capabilities, bringing in new global platforms and expansion of distribution networks in India. Attention will also be directed towards the growth of the middleweight motorcycle segment in global markets.

Royal Enfield will also be updating its engine lineup to BS VI compliant engines in keeping with new emission regulations coming into effect. The company also plans to enhance its presence in the ASEAN markets with new assembly operations coming up in Thailand, its first outside India.

Along with increased investments and expansion plans, the company has also announced appointment of Vinod Dasari as the new CEO of Royal Enfield. Dasari, who was earlier CEO and MD at Ashok Leyland and served as President of SIAM from 2015-17 prior to which he was President of ARAI from 2013-15, will be Siddhartha Lal, who will continue as the Managing Director of the company.

Last year, Royal Enfield launched the 650 Twins while for 2019 the company launched the Bullet Trials 350 and 500 priced at Rs.1.62 lakhs and Rs.2.05 lakhs respectively. Next the company plans to launch new gen Classic, Bullet and Thunderbird range, in both 350 and 500 cc formats.