Royal Enfield increases monthly capacity to 10,000 units from 7,000 units

Still not able to meet the demand, says the CEO

Royal Enfield, has increased its manufacturing capacity at its Tiruvatriyur facility, near Chennai to 10,000 a month. This comes in response to the waiting period for the company's products, which range from 3-6 months.

After launching the company's Thunder Bird 500 cc in Chennai today Venkie Padmanabhan, chief executive officer, Royal Enfield said that in January this year the company had a capacity of 7,000, which was increased to 10,000 at the existing facility.

Despite increasing the capacity the company could not meet the market demand, said Padmanabhan.

By first quarter of 2013 company's Oragadam facility, which will spread over in 50 acre land, will be ready and both the facilities will have a combined capacity of 1.5 lakh units, said Shaji Koshy, SVP - sales and marketing, Royal Enfield.

He added the company had set a sales target of one lakh units in 2012.

The company is betting big on its new Oragadam facility, which will increase company's manufacturing capacity by around 50%.