[theMAG]

Royal Enfield starts commercial production from its new manufacturing facility at Oragadam, Tamil Nadu. Spread over 50 acres, the Oragadam plant has an installed production capacity of 150,000 units in the first phase. An initial investment of Rs. 150 crore has been made towards construction of this facility that will produce the full range of Royal Enfield motorcycles.

Rolling out the first bike from the Oragadam facility, Siddhartha Lal (MD & CEO) said, “Royal Enfield has witnessed a huge surge in demand in the recent past, recording a growth of over 50% for each of the last two years. We have stretched the capacity of our existing 60 year old plant to record levels – achieving production of over 12,000 motorcycles in March 2013. Yet the demand for our motorcycles has continued to outpace the supply. With the execution of the first phase of the plan, we have revised our production target upwards in 2013 to 175,000 motorcycles from both plants. We have already begun working on the second phase of expansion at Oragadam, which will further increase the production capacity to 250,000 motorcycles by 2014.”

The construction at the plant commenced in February 2012 and was completed in a record time of 11 months. A CED paint shop with a painting capacity of 600 motorcycles per day has been installed. A robotic painting system and powder coating system have also been added. Chassis dynamometers and a 1.4 kilometer test track allow for the motorcycles to be thoroughly tested before customer dispatch.

[Latheesh]

That is good news.
They say current plant produced 12000 units in March.
Means it can produce approximately 150000 units/year.
Their new plant installed capacity (ph-1) 150000 units/year

Report says both put together they can make 175000 units this year!

Which one is true?

[mobike008]

Great news for new aspiring RE owners.

However, in an effort to increase production, hope they dont compromise on the quality ( which itself presently isn't of highest standards)

Originally Posted by Latheesh

They say current plant produced 12000 units in March. Means it can produce approximately 150000 units/year.
Their new plant installed capacity (ph-1) 150000 units/year

Report says both put together they can make 175000 units this year!

Which one is true?

Current plant can produce 108,000 units this year ( Remaining 9 months) and considering the new plant production capability which is roughly 12,500 each month so a total should have been 2,20,500

It's my feeling they may have quoted an overall lower estimation to be on safe side

While the existing owners of Royal Enfield can proudly say that their bikes are hand-crafted, I hope that the new Royal Enfields made in the new plant are better than their elders quality-wise.

[marinegopi]

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[naveenroy]

That is indeed good news for prospective owners. But will quality take a hit? Oh, wait a sec. Quality?

Jokes aside - some of my friends will be heaving sighs of relief now.

[Leepower]

Let's hope that atleast now I will get my Desertstorm... I booked one a year and three months ago, still waiting for it!!!

[ArizonaJim]

A bit more information about the new plant.

http://www.indianexpress.com/news/ro...lant/1109705/0

This news report appeared in today's Deccan Herald:

[himanshugoswami]

Lets hope the new plant has more modern machinery which rolls out products with better tolerances. I am very tempted to pick up a TBTS 500 but something about the quality is holding me back. And then, my wife came up with a gem of a logic- if you are willing to spend 2L on a bullet, wait for about a year or so, save some more money and buy a Harley instead at 6 L (you gotta love women!!!!- My wife absolutely loves Harleys and butch SUVs)

[mobike008]

Originally Posted by himanshugoswami

And then, my wife came up with a gem of a logic- if you are willing to spend 2L on a bullet, wait for about a year or so, save some more money and buy a Harley instead at 6 L (you gotta love women!!!!- My wife absolutely loves Harleys and butch SUVs)

Good Point but, RE holds more image in India than the HD (atleast for the common man). HD is a lifestyle bike unlike an RE which is now fast becoming one too due to its renewed popularity

Btw, the cheapest HD is an Iron 883 which will cost 7.5 Lakhs OTR and atleast a lakh more if you want to kit yourself to go with the bike which is a logical way to go if your buying an HD.

It's still a cool 5.7 Lakhs away from the costliest bullet

[ArizonaJim]

I don't recall seeing this little video about the new plant so I will post it for those who are interested.

http://www.youtube.com/watch?v=P0yoxmQFfjc