Royal Enfield to hike prices of bikes by April 2010

Chennai based Eicher Motor company's arm, Royal Enfield has intended to hike the prices of bikes by the April, 2010. The company had launched its two new heavy bikes in India, last year. These bikes are Royal Enfield Bullet classic 500cc and Royal Enfield Bullet classic 350cc. Royal Enfield bikes in India will be expensive to make them compliant with new emission norms, which will come into effect from 2010. According to the new BS III norms and BS IV norms, currently, the company is working on upgrading its models, which are selling well in Indian auto market. Eicher Motors Managing Director and CEO Siddhartha Lal says," The new upgrade models engines will be different caliber and that will make them expensive. Royal Enfield classic 500cc bike is one of the most successful model where the company still pending orders of 2000 units for the export market and at least 3000 units for domestic market. Currently, the company sells Royal Enfield Classic, Classic 500, Thunderbird, Machismo and Electra brands in the country. Royal Enfield has already delivered 1000 units of classic 500 since November 2009. Presently, the company capacity of manufacturing 60,000 units at its Chennai facility, which will be extended to 100,00 units yearly. Royal Enfield intends to spend at least Rs. 100 crore to increase capacity. The pending backlog will be cleared in a span of next five month.