This investment will be used for development of new products, EVs and also for any capacity enhancement for IC engine models, whenever required.
08 Jan 2024 | 9371 Views | By Autocar Professional Bureau
Chennai-based midsize motorcycle manufacturer Royal Enfield has signed an MoU with the Government of Tamil Nadu for proposed investment of Rs 3,000 crore, over eight years, for brownfield and greenfield projects. The MoU signing was done at the Tamil Nadu Global Investors Meet 2024, in Chennai today.
Royal Enfield's ...
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Chennai-based midsize motorcycle manufacturer Royal Enfield has signed an MoU with the Government of Tamil Nadu for proposed investment of Rs 3,000 crore, over eight years, for brownfield and greenfield projects. The MoU signing was done at the Tamil Nadu Global Investors Meet 2024, in Chennai today.
Royal Enfield's is the fourth major MoU signing from the automotive sector at the Tamil Nadu Global Investors Meet 2024 following the ones from TVS Motor Co, Hyundai Motor and Vietnamese EV manufacturer Vinfast on January 7.
As per Royal Enfield, this investment will be majorly used for the development of new products, EVs (product development and capacity building) and also additionally for any capacity enhancement for ICE, whenever required. This investment is expected to create employment opportunities for up to 2,000 individuals, both directly and indirectly, in 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.
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!”
Royal Enfield has two manufacturing plants in Oragadam and Vallam Vadagal in Tamil Nadu. The upcoming expansion will both strengthen the company's production capabilities and also contribute to the state's position as a major automotive manufacturing hub.
Royal Enfield has also signed two similar MoUs back in January 2019 and May 2012 with the government of Tamil Nadu with the commitments completed before the stipulated investment period.
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