New Delhi: Eicher Motors announced on Monday the capital expenditure plan of Rs 700 million for Royal Enfield in the current fiscal year.
The capital expenditure will be used for the construction works of the Technology Center, Phase 2 of the Vallam Vadagal plant in Tamil Nadu and the development of new platforms and products. In addition, for 2019-20, Royal Enfield plans a production of 9,50,000 motorcycles, Eicher Motors said in a statement.
“This year, Royal Enfield will focus on the upcoming transition to BS-VI emission standards along with strengthening our product development capabilities and working towards new global platforms,” said CEO and CEO of Eicher Motors, Siddhartha. Lal.
: In the second phase of our Vallam Vadagal plant near Chennai, Tamil Nadu is making good progress and commercial production is expected to start in the second half of this financial year. The construction of the Technology Center in Chennai is also about to be completed, “he added.
“With an extensive distribution network in India, a growing international presence and the development of cutting-edge capabilities in product development, Royal Enfield is on track to grow in the medium-weight motorcycle segment worldwide in the coming years” said Lal.
In fiscal year 2018-19, Royal Enfield announced the formation of its wholly-owned subsidiary in Thailand. To further strengthen its presence in the ASEAN region, it recently announced its next assembly operations in Thailand, its first outside of India.
The initial response to Royal Enfield in the ASEAN region, which is one of the largest two-wheeler markets, has been very encouraging, Eicher Motors said in the statement.
Royal Enfield is expected to be well positioned to fill the gap in the medium segment of the region, he added.