Royal Enfield to invest Rs 550-600 crore in FY22-23, VECV another Rs 550-500 cr

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Chennai: Royal Enfield and Volvo Eicher Commercial Vehicles (VECV) will together invest around Rs 1,000-1,100 crore in FY22-23. The total amount will include around Rs 550-600 crore spent by Royal Enfield and another Rs 500-550 crore by VECV, senior executives of the company said.
Spending will be on products and variants as well as capability balancing for Royal Enfield, while VECV will spend most of it migrating to OBD2 in April 2023.
Royal Enfield, which started CKD operations in Thailand and Colombia in FY21-22 (in addition to Argentina which was already a CKD market), saw 108% year-over-year sales growth markets with 7% market share in mid-size motorcycles in Europe, 5% in America and 7% in APAC, said Siddhartha Lal, MD, Eicher Motors.
Royal Enfield, which focuses on international markets, is working on electric vehicles, but it will take much longer for its electric vehicles to debut in the market. “Engineering work is ongoing, but we have a very long product cycle, and right now the non-commuter EV segment is a few years away,” Lal said.
In the fourth quarter of FY22, Eicher Motors recorded its highest ever total operating income at Rs 3,193 crore and profit after tax at Rs 610 crore. For FY21-22, Eicher Motors recorded its highest ever total operating income at Rs 10,298 crore and PAT at Rs 1,677 crore. The company has declared a final dividend of Rs 21 per share for the financial year 2021-22, implying a payout sum of Rs 574 crore.

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