Eicher Motors to further expand its two-wheeler capacity

Automobile maker Eicher Motors Ltd plans to increase its two-wheeler production capacity to 250,000 units in its second phase of expansion, a top company official said Tuesday.

The company expects the waiting time for its Bullet range of motorcycles to reduce with the commissioning of the Rs.150 crore plant at Oragadam near here, managing director and CEO Siddartha Lal told reporters here.

Speaking about the Oragadam plant, Lal said: "The plant will initially roll out 150,000 units and production will be ramped up to 175,000 units by the end of this year."

He said that during the second phase of expansion, the capacity will be increased to 250,000 units.

The company's two-wheeler division Royal Enfield that makes the Bullet range of bikes rolled out its first motorcycle out of its new plant. Eicher Motors already has a two-wheeler plant here that rolled out around 110,000 units last year.

"We can bring down the waiting period to six to seven months from eight months now if the demand continues at this level," Lal said.

According to him, the new plant is crucial for the company to meet its global markets and also to improve the margins.