Royal Enfield to Invest INR 3,000 Crore in Tamil Nadu

Published On: 9 January 2024
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The new investment is likely to create job opportunities for up to 2,000 individuals in Tamil Nadu.

Royal Enfield announced that it will make an investment of INR 3,000 crore in Tamil Nadu. With this investment, the company is aiming to develop new products, electric vehicles (capacity building and product development), and capacity enhancement for ICE models. The new investment is likely to create more job opportunities for up to 2,000 individuals in Tamil Nadu.

The auto giant signed a non-binding Memorandum of Understanding (MoU) with the state government of Tamil Nadu at the Global Investors Meet 2024 that was held in Chennai. Royal Enfield proposed an investment of INR 3,000 over the course of eight years for greenfield and brownfield projects. The Chennai-based motorcycle manufacturer already has manufacturing plants in Vallam Vadagal and Oragadam. Various Royal Enfield bikes are being manufactured in these facilities.

The company had signed two similar MOUs with the government of Tamil Nadu in January 2019 and May 2012 as well. This is going to be the company’s third plant that will help increase its development capacity.

As part of the memorandum, the government of Tamil Nadu will provide assurance of significant regulatory facilitation and infrastructural support under the applicable laws. Also, the government will provide uninterrupted power supply to the company to aid in the production process.

The CEO of Royal Enfield, B. Govindarajan, 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!”

Apart from Royal Enfield, other manufacturers, including Vinfast, TVS Motor Co, and Hyundai Motor, have also signed the Memorandum of Understanding (MoU) at the Global Investors Meet 2024.

Royal Enfield unveiled the Himalayan 450 and Super Meteor 650 in the Indian market last year. The automaker is currently getting ready to launch the Shotgun 650 in the domestic market.