ROYAL ENFIELD PREPARES FOR MAJOR INVESTMENT
July 25 2006.


Royal Enfield, the world's oldest surviving motorcycle manufacturer, is set for a new phase of expansion and development following a decision by its parent company to restructure the business.  Since being taken over by the Eicher Group in 1994 there have been substantial improvements in production and quality, with output rising to 35,000 units per year and motorcycles accounting for approximately 10% of group turnover. 
"We believe we can grow the enthusiast and leisure motorcycle market in India and abroad," said Siddartha Lal, Group Chief Executive of Eicher Motors.  "We're in an interesting position because we have a good cost base here in India," he adds.
Eicher plan to retain a majority share-holding in Royal Enfield, but the re-structuring will give factory management far greater flexibility to attract outside investors along with strategic partners to help develop the next phase of models, starting with a brand new bike due out in 2008. Royal Enfield plans to pursue the 'retro classic' market that has been targeted so successfully by those two other long-lasting brands, Harley Davidson and Triumph.
The new alloy-engine Bullet Electra, launched in 2004, is attracting a new generation of riders to Bullet ownership and export business is growing - the UK is the factory's biggest market outside India, with Germany and the USA close behind. 
The latest incarnation of the Bullet, the Electra-X, sells for £3,532 on the road.

Contact 01386 700907 or visit www.royal-enfield.com
* The Eicher Group has diversified business interests in design & development, manufacturing and local/international marketing of Trucks & Buses, Motorcycles, Automotive Gears and components, with a gross sales turnover of over Rs. 17,250 million (£200 million) in the year 2004-05.