Royal Enfield is riding great guns after a phenomenal performance in the second quarter. The numbers show a whopping 69.9 per cent growth in the second quarter of this financial year, with a jaw-dropping 81977 motorcycles being sold in all during this period. The total cumulative sales for this calendar now counts up to 220377, which is indeed a huge number. One major part is that despite such high numbers, the company is unable to meet the demand figures, which is good for company as it shows that the customers are waiting for more from this company.
Royal Enfield has not been well up to the mark as far as meeting the demands are concerned. Recently, it has acquired land for setting up a third plant in Oragadam in Tamil Nadu. This is directly in tune with the rising demands of the various models of this bike. The company is slowly but steadily increasing the capacity of the unit at Oragadam. For this year, it will be producing nearly three lakhs units, which will be hiked to four lakhs in the next year. The company will make sure that the total production number reaches six lakhs as soon as possible.
Siddhartha Lal, the CEO and MD of Eicher Motors said, "At Royal Enfield, we have set our sights on becoming the leaders in global mid-sized motorcycling segment and we are working towards it persistently. While we continue to ramp up capacity at our Oragadam plant month on month; we have recently acquired a 50 acre plot in Vallam Vadagal, near Chennai, Tamil Nadu.”
However, due to the excess demand, the waiting period of the bike has been increased from 30 days to 90 days, of late. It is expected that once the production capacity is increased, the company will be able to meet the demands of its customers conveniently.
