Royal Enfield has signed a Memorandum of Understanding (MoU) with the Government of Tamil Nadu for a proposed investment of Rs. 3,000 crore to set up greenfield and brownfield projects in the region. According to a statement by the company, its parent company, Eicher Motors Limited, will invest the amount over a period of eight years in Tamil Nadu. This investment will be used for the development of new products, EVs (including product development and capacity building) and also for any capacity enhancement for internal combustion engine (ICE) products, whenever required.
Also Read: Royal Enfield Records Sale Of 63,387 Motorcycles In December 2023
The Royal Enfield Shotgun 650 is the brand's newest model after the new Himalayan 450.
According to a statement by Royal Enfield, this investment is anticipated to create employment opportunities for over 2,000 individuals, both directly and indirectly, further contributing to the socio-economic growth of the state of Tamil Nadu. Key provisions of the MoU include the Government of Tamil Nadu’s assurance of necessary infrastructural support and regulatory facilitation in accordance with applicable laws. The government will also prioritise providing uninterrupted power supply and other essential infrastructure support on a best-effort basis to the company.
Also Read: Royal Enfield Himalayan 450 Prices Increased
B Govindrajan, CEO, Royal Enfield
B Govindarajan, CEO - Royal Enfield, said, "Tamil Nadu has been our home; anchor for our engineering, technical and manufacturing foundations for several decades. This strategic investment in Tamil Nadu marks a significant milestone for us at Royal Enfield. We extend our heartfelt gratitude to the Government of Tamil Nadu for their unwavering support, and we are eager to partner with the government and create a positive impact on the community and contribute to the state's overall economic prosperity. In a bid to promote a healthy balance between man, machine and terrain, we look forward to delivering on our vision of manufacturing premium and evocative motorcycles that are Made in Madras and celebrated across the world!”
Also Read: Royal Enfield Trademarks Goan Classic 350 Name
Royal Enfield unveiled an electric Himalayan testbed last year in prototype form. This electric adventure bike is undergoing development and is expected to be unveiled in production form by 2025.
The upcoming expansion plans are expected to strengthen Royal Enfield’s production capabilities as well as contribute to the state’s position as a major automotive manufacturing hub, the statement added. Royal Enfield has also signed two similar Memorandum of Understanding (MOUs) back in Jan 2019 and May 2012 with the Government of Tamil Nadu. The commitments were completed before the stipulated investment period.
