Royal Enfield, the two-wheeler arm of Eicher Group, is looking to increase its production capacity beyond 1,50,000 units per annum by 2014 as it looks to strengthen position in the niche bike market.
The company, which is currently setting up a new plant near Chennai at an investment of Rs 150 crore, expects to start production from the new facility within two months.
"With our new plant at Oragadam (near Chennai) coming onstream within the next few months, in 2013 we will have a total combined capacity of 1,50,000 units. We are already working to increase it beyond that by 2014," Eicher Motors Ltd Managing Director & CEO Siddhartha Lal said in a teleconference.
When asked what kind of additional capacity and investment the company is looking at, he said: "We have not decided on any particular number but all the fresh capacity will be by and large at the new plant."