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Royal Enfield increased production.!!! - nairrk - 11-17-2010

Eicher Motors is looking for the expansion activity of its two wheeler wing Royal Enfield. As a result there will be a new facility to increase the production to 10000 monthly units. The CEO of Eicher Motors said the company is vigorous in locating an ideal place for setting up its new facility for Royal Enfield. The existing facility in Chennai has the monthly capacity of 5000 units but there are only 4000 units coming out due to certain constraints.

The CEO said that the drive for increased capacity of Royal Enfield is given top priority and by 2011 it would be around 6000 units. The location and the amount for investment will be decided soon, he said. The JV between Eicher Motors and Volvo Group will involve Rs800 crore for the production increase in the next three years. Also will be a new engine plant along with the expansion spree. The production of VE Commercial is to be increased to 8000 units from the existing 4000 units with an investment of Rs500 crore.

To meet the demand for medium size duty engines there will be a new facility which will feed the Eicher and Volvo vehicles, he added. There will be an investment of Rs300 crore for the engine plant to be derived from the internal sources. This facility will be designed to deliver an annual capacity of 85000 units of Royal Enfield. Earlier proposal was to erect the new facility at Pithampur which has the annual capacity of 40000 units. The proposed new facility will design Volvo 5-lit and 8-lit commercial vehicle engines meeting the Euro III and Euro IV norms. In another move, Eicher Motors said at an investment of Rs5 billion, the existing facility will be upgraded to meet the demand for its commercial vehicles.