CHENNAI: Manufacturers of iconic Royal Enfield range of motorcycles, Eicher Motors, plans to sell 6.75 lakh units and has earmarked Rs 600 crore as capital expenditure for 2016-17.

“Last years capex (capital expenditure) was Rs 500 crore. While this year it is Rs 600 crore, which is substantial,” Eicher Motors Managing Director and CEO Siddhartha Lal told reporters.

Speaking during a visit to the companys manufacturing unit at Oragadam near here, he said on the huge success of its Classic range of motorcycles, the company expects to sell about 6.75 lakh in 2016-17. “The Classic model is one of the best sellers,” he said. “We are adding around two lakh units this year. So, the total 6.75 lakh units will be more than what was sold last year. In fact, we are adding the entire capacity we had in 2012,” he said. As of March 31,2016 the company had sold 5.07 lakh units, he noted. Responding to a query on the companys third unit coming up at Vallam Vadagal near here, he said it is expected to become operational by September 2017. “Vallam unit will be ready by September 2017. The large chunk of investments to be made this year will be in Vallam itself,” he added. Currently, Royal Enfield has manufacturing units in Thiruvottiyur and Oragadam. Vallam Vadagal will be its third unit in Tamil Nadu. On the total capacity of manufacturing plants, he said “Total capacity will reach 900,000 units in 2018-19. This year (2016-17), we are expecting to produce 675,000.” Regarding companys exports, he said, it grew rapidly. and witnessed 50 per cent growth last year. The company would focus on Latin America, South East Asian markets. Royal Enfield sells popular motorcycles, Bullet 350, Classic, Thunderbird, Continental GT. –PTI