It is no secret that Royal Enfield is currently facing a problem of demand out-numbering supply. Royal Enfield’s Classic Range of bikes consisting of the Classic 500 EFI and the Classic 350 have been huge hits for the company in terms of sales figures, ever since they were launched into the market late last year.

The company is now facing an acute production capacity shortage which has caused the waiting period for its bikes to escalate into several months and has even forced the company to suspend bookings of the Classic 350.

Mr. R.L Ravichandran, CEO, Royal Enfield -

It is a difficult situation and we are looking at a variety of options to get over this problem

The company in order to find solutions to its problems, has sought the help of Kinetic. Though Kinetic’s two-wheeler business has been sold to Mahindra and Mahindra, the paint shop at Kinetic’s Ahmednagar facility has some spare capacity left, which Royal Enfield will be utilizing.

Kinetic’s paint shop will now also paint parts of Royal Enfield motorcycles such as front and rear metal fenders, cover tubes, toolboxes and ornamental covers for Royal Enfield’s Classic range of bikes.

Mr. R.L Ravichandran, CEO, Royal Enfield -

There is only so much this plant can take, but it is not as if we can just start producing motorcycles overnight in a new facility

Though using Kinetic’s paint shop will help Royal Enfield to some extent, the company needs to do something fast in order to find a permanent solution to its growing list of problems.

Source – Hindu Business Line