Eicher Motors owns the Royal Enfield brand of bikes in India. The company is planning to expand its network and foresees higher sales in India in the current calendar year. It hopes to sell 50,000 units by December itself. It further envisages growth in the year 2010 where motorcycles will account for nearly 15 percent of its annual revenue. It expects to sell at least 60,000 units in the next calendar year. It sold 43,000 units in 2008.
The company is also planning to ramp up its production capacity by 2013 to one lakh units from its current capacity of 50,000. "The company will expand the capacity to one lakh units by 2013 at an investment of Rs 65 crore at the existing plant in Chennai," said Royal Enfield DGM (Sales and Marketing) S Koshy. Royal Enfield currently exports its 500cc model to European and American markets. It also intends to increase its exports to at least 15 percent from its current 5 percent share in the turnover. It is aiming to export its bike in other markets such as Latin America, Africa and Middle East. Eicher Motors currently has two models 350cc and 500cc in India. It now aims to move up to bigger engine models of capacity 800cc and 1000cc.
