Concerned about long waiting periods of around 5 months, Royal Enfield plans to enhance capacities by the end of this year. With present installed capacity at 4.5 lakh units per annum or 37,500 units per month, capacities will be increased to around 6.25 lakhs units per annum or 50,000-52,000 units per month from December 2015.
Besides enhancing capacities at the company, existing plants, Royal Enfield has also taken up land for a third plant close to the present plants at an investment of INR 70 crores.
With current waiting periods at 5 months on an average and with rising demand, the company is set to meet growing demand for which it will also be opening 85 more sales and service outlets by the end of this year, taking overall count to 500. Out of these 85 new outlets, 20 will be in Maharashtra which is the company’s largest market.
Royal Enfield has noted increased sales since the start of this year. January 2015 saw sales increase 43 percent while in February sales were up 49 percent. During March and April, sales increase 42 percent over sales in the same period of the previous year while sales in May and June were up 47.5 percent.
Setting targets of 4,50,000 units during the year, Royal Enfield plans a whole new set of bikes for 2016. Currently limited to bikes with engine capacity from 346cc to 535cc, the company plans to venture into new category of bikes competing in segments from 250cc to 750cc making it the first time that the company will offer bikes with engines higher than 535cc.