Royal Enfield Signs MoU Worth ₹3,000 Crore With Tamil Nadu Government

Royal Enfield and the Government Of Tamil Nadu have signed a non-binding Memorandum Of Understanding at the recently concluded Global Investors Meet 2024, at Chennai. As part of this MoU, the Chennai-based two-wheeler manufacturer will be investing ₹3000 crore over the next eight years in the state to primarily develop new products in the future, especially EVs. 

As for Royal Enfied’s future EVs are concerned, the company has already confirmed that they are working on the electric Himalayan. The same was also shown during the global unveiling of the Royal Enfield Himalayan at the 2023 EICMA. Moreover, Royal Enfield’s Eicher Motor also owns a 10.35 per cent equity stake in Stark Future Technologies, with whom they are collaborating in the space of electric mobility. Thereby, the latter will be providing RE with electric components for the development of the former’s future EVs. 

The latest investment in Tamil Nadu is expected to generate employment for 2,000 individuals both directly and indirectly. Other key provisions of the MoU will include assurance from the Tamil Nadu government to provide infrastructural support and regulatory facilities in the form of uninterrupted power supply. 

Royal Enfield had also signed two similar Memorandum of Understanding (MoUs) with the Tamil Nadu government back in January 2019 and May 2012. The commitments in both these MoUs were completed before the stipulated investment period. 

Speaking on the occasion of this announcement, B Govindarajan, CEO, of Royal Enfield said,” This strategic investment in Tamil Nadu marks a significant milestone for us at Royal Enfield.” 

“In a bid to promote a healthy balance between man, machine and terrain, we look forward to delivering on our vision of manufacturing premium and evocative motorcycles that are Made in Madras and celebrated across the world!” he further added.