Royal Enfield plans new capital investment, capacity expansion

In response to stronger-than-expected worldwide demand for its new fuel-injected product line, Royal Enfield Motors has made capital investment plans to increase capacity and expand capabilities at its primary production facility, according to a company press release.

Production at Royal Enfield has been running at full capacity for more than a year, with demand generated by domestic and international markets continuing to outpace supply.

The expansion plan will nearly double Royal Enfield’s production with increases in capacity over the next three years. The plan forecasts unit production growth from Royal Enfield’s 2010 unit volume of 52,000 to as much as 70,000 units for 2011, followed by up to 90,000 units for 2012 and finally 100,000 units or more for 2013.

The expansion plan also provides capital for the progressive development of Royal Enfield’s production capabilities, including a modern paint studio, die and tooling upgrades, aesthetic and sheet metal refinements and an even sharper focus on new model development.

“Royal Enfield has made a strong commitment to meeting international demand and responding to the needs and expectations of its growing customer base,” Kevin Mahoney, president of Royal Enfield USA, said in the release. “Consumer response to the new model line in the United States and elsewhere has been remarkably strong and it’s very encouraging to know that Royal Enfield will be ready as the market continues to grow.”

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