Royal Enfield Plans New Capital Investment, Capacity Expansion to Meet Worldwide Demand

In response to stronger-than-expected worldwide demand for its new fuel-injected product line, Royal Enfield Motors has announced capital investment plans to increase capacity and expand capabilities at its primary production facility. Production at Royal Enfield has been running at full capacity for over a year, with demand generated by domestic and international markets continuing outpace supply.

The expansion plan will nearly double Royal Enfield's production with progressive increases in capacity over the next three years, allowing the brand to continue to keep pace with the brisk sales of its new model line. 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 its growing customer base. 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," said Kevin Mahoney, President of Royal Enfield USA.

Royal Enfield first introduced its G5 and C5 model lines in the United States in 2009. The new model lines, which pair Royal Enfield's famous retro aesthetic with the brand's robust and reliable new Unit Construction Engine, have been a resounding success. Strong enthusiasm from consumers and industry press has created unprecedented demand for Royal Enfield in the United States and around the world.

Royal Enfield USA is operated by Classic Motorworks, a Minnesota company, under exclusive license from Royal Enfield Motors, headquartered in Chennai, India. Royal Enfield motorcycles are available in the United States through a growing network of dealers nation-wide.

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