Eicher Motors has announced a capex plan of Rs.800 crore for FY19, which includes setting up of a plant in Tamil Nadu and raising production capacity to 9,50,000 units as well.

The investment will be totally directed towards Royal Enfield. The company will start construction of Phase-2 of its Vallam Vadagal plant in Tamil Nadu during the year.

Eicher Motors, MD & CEO Siddhartha Lal stated, “Our demand continues to exceed supply, and we continue to see strong growth from all our markets. Therefore, we have decided to expand our production capacity with the second phase of our Vallam Vadagal plant near Chennai, Tamil Nadu. We will also complete construction of our Technology Center in Chennai this year, and invest further in the development of new products to meet upcoming regulations and to expand our portfolio for our global markets.”

Read EquityPandit’s Technical Analysis of Nifty Auto Outlook for the Week