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Royal Enfield looks to boost its manufacturing capabilities
Royal Enfield motors seems to be cruising on a totally different road. With leisure-riding still attracting customers, the iconic bullet manufacturer's sales are so high that the company is ramping up its new plant to keep up with accelerating demand, reports CNBC-TV18's Swathi Narayanan.
While the auto sector chugs along, slowed down by rising rates and fuel prices, Royal Enfield motors seems to be cruising on a totally different road. With leisure-riding still attracting customers, the iconic bullet manufacturer's sales are so high that the company is now ramping up its new plant to keep up with accelerating demand, reports CNBC-TV18's Swathi Narayanan.
We might have to wait seven months for this thunder bird Royal Enfield bikes in India or even longer if you want to own this classic 350. Faced with unprecedented demand, the company clocked its highest ever quarterly sales this July to September at over 20,000 units.
Venki Padmanabhan, CEO of Royal Enfield, For last three months, we have done 7000 or more in sales. From the demand stand point what used to be 7-8K bookings have gone to 10-12k bookings a month.
Though the bike maker has already stepped up production by 50% in the last one year producing 75,000 bikes from its plant in Chennai, it's still falling short of demand. The company is now banking on its new green field facility in Chennai to start operations from 2013 and bring in an additional capacity of 1.50 lakh units.
We are aggressively increasing the production capacity in the existing plant and we hope to do so in the new plant too. We are also working with new dealers and distributors to get more people to come into our brand, mentioned Padmanabhan.
So, why is this surge in demand? Its not just the youth, even corporates are queuing up for such aspirational and leisure products. With enough orders for at least six months of the next year, Royal Enfield is sure having a smooth drive.
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