Daijiworld Media Network

Bangalore, Oct 25 (Business Standard): Royal Enfield, India's oldest maker of motorcycles, is looking at doubling its sales at 150,000 units during the next year (2013) as against 75,000 units sold in 2011. For the year 2012, the company is aiming at selling 100,000 bikes.

In order to meet the growing demand for its high performance motorcycles, the company is setting up second manufacturing unit at Oragadam near Chennai at an investment of Rs 150 crore. It has bought 50 acres land for the purpose. The plant will commence production during the first quarter of 2013, Shaji Koshy, senior vice president, sales and marketing, Royal Enfield said.

“Last year we sold 75,000 units, whereas we have achieved that mark in the first three quarters of this year. Our monthly sales volume has increased to 10,000 units from 7,000 units in January this year. With the launch of Thunderbird 500 we hope to double our sales in 2013,” he said.

Talking to reporters after the launch of Thunderbird 500 and all-new Thunderbird 350 in Bangalore on Thursday, Koshy said the company would have a combined manufacturing capacity of 150,000 units in 2013. The company has also increased its dealer network in the country to 237 outlets. The company will start delivering the newly launched bike from end of November and the customers, who have booked Thunderbird 350 would be given a choice to shift to Thunderbird 500 before commencing the booking for new customers, he added.

The company plans to export about 5 per cent of its total capacity next year. It currently exports its bikes to USA, UK, Canada, and Latin America among other markets.

Thunderbird 500 is available for Rs 186,622 (On-road, Bangalore) and Thunderbird 350 comes with a price of Rs 146,466 (On-road, Bangalore).