Royal Enfield, the global leader in the mid-weight motorcycle segment and a unit of Eicher Motors Limited (IML), has signed a non-binding memorandum of understanding (MoU) with the Tamil Nadu government at the Global Investors Meet in Chennai. Under this MoU, Eicher Motors will invest Rs 3,000 crore in the state over a period of eight years. This investment will help establish greenfield and brownfield projects in the region.
How will the investment be used?
The investment will be mainly used for the development of new products, including electric vehicles (product development and capacity building) and petrol vehicles (capacity building as per requirement). This investment will also create 2,000 jobs in the region, which will help in the economic development of Tamil Nadu.
What support will the Tamil Nadu government provide?
In the MoU, the Tamil Nadu government has assured of support in terms of infrastructure and regulatory facilities under the applicable laws. The government will provide priority and uninterrupted power supply and other basic support to the company.
What did the CEO of Royal Enfield say?
Commenting on this progress, B Govindarajan, CEO of Royal Enfield, said that Tamil Nadu is our home, where we have laid the foundation of our engineering, technical and manufacturing capabilities for decades. This investment in Tamil Nadu is a significant achievement for us at Royal Enfield. We are grateful to the Tamil Nadu government for their support. We are excited to partner with the government to bring positive change in the society and contribute to the state’s economic prosperity. We are eager to offer premium and attractive motorcycles that are made in Madras, but loved across the world.
How will Royal Enfield’s production capacity increase?
The manufacturing plants located at Oragadam and Vallam Vadagal cater to the growing needs of customers across the world by offering the best products. This expansion will not only increase Royal Enfield’s production capacities, but also strengthen the state’s position as a major automotive hub. Royal Enfield had signed similar MoUs with the Tamil Nadu government in January 2019 and May 2012