This intiative, the brand's loyalists believe, should have been planned a year back. New Delhi-based Eicher, the commercial vehicle making company, is the holding company of Royal Enfield.
The company had increased production by 50 per cent to 6,000 units a month from 4,000 units in March. It plans to invest Rs 65 crore (Rs 650 million) on expansion.
"We have been carrying out expansion at Chennai. Last year, we added a significant portion but this year despite continued demand we will not be able to add more than 10 per cent," added Lal.
The unlisted two-wheeler company is talking to governments of Andhra Pradesh and Tamil Nadu for greenfield expansion, which could entail an investment of more than Rs 300 crore (Rs 3 billion). There has been, however, no confirmation on this front by the company.
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