Eicher Motors Limited has signed a MoU (Memorandum of Understanding) with the Tamil Nadu state government to inject a sum of Rs 350 crore at Chennai plant. A major part of this investment will be utilized in enhancing the capacity of this plant to meet the increasing demand for its motorcycles in the Indian market.
In the first phase of expansion, the capacity of the new Royal Enfield plant will be enhanced to 1,50,000 units per annum. The proposed plant of the company is currently under construction and will go on production by the first quarter of next year. The company is expecting to achieve a sales figure of 1,00,000 motorcycles by the end of current year.
While speaking to ET on the company’s plans, Mr. Siddhartha Lal, director & CEO of Eicher Motors Limited, said, "Once the new plant comes on stream, it will be a great help to deliver more number of motorcycles to the waiting customers. Till that time, we will work very hard to stretch our existing capacity to the maximum number possible. We have crossed monthly sales of 9,000 units in March and we will strive to deliver more numbers in the coming months."
