Royal Enfield to set up manufacturing plant in Brazil

Royal Enfield, India based most popular cruiser motorcycle maker, is in top gear and it is planning to set up a two-wheeler manufacturing plant in Brazil. With the launch of this unit, the company aims to grab the Latin American two wheeler market.

 

R.L. Ravichandran, board member and executive director at Eicher Motors quoted as saying that Eicher Motors Ltd to help Royal Enfield to set up this plant in Brazil.  The company will able to start production of the bikes within two years from this plant. 

 

The countries second largest two wheeler maker, Bajaj Auto also exporting its vehicles to Latin America and covering more than 30 countries. The demand of the Royal Enfield bikes is reducing in UK and US market so the company is targeting developing Latin American countries because the demand for the bikes is rising in these countries. 

 

Royal Enfield has sold 5326 unites of the bikes in month of December 2010 in India and other developing countries which is 25 per cent more than same month of previous year.

 

Royal Enfield bikes, especially, Royal Enfield Bullet Classic 350cc and Royal Enfield Bullet Classic 500cc are in waiting period of more than six months due to high demand and limited production capacity of the company. At present, it has only one manufacturing plant in Chennai and its production capacity is only 50000 bike per year. Now Royal Enfield is going to launch one more facility in Tamil Nadu or Andhra Pradesh with aim of 75000 bike per year production.