Royal Enfield, a division of Eicher Motors, launched two refreshed versions of its most successful 500 cc motorcycle Classic on Thursday. The Classic Chrome and Desert Storm are priced at Rs 1.65 lakh and Rs 1.58 lakh on road respectively, around Rs 10,000 higher than the existing Classic.

“The two models are based on the Royal Enfield Classic which was launched in 2009. At present, the Classic models 350cc and 500cc motorcycles, contribute to around 50 per cent of the total sales of the company,” said Venkatesh Padmanabhan, CEO, Royal Enfield.

According to Society of Indian Automobile Manufacturers (SIAM), Royal Enfield has sold 30,299 units with a growth of over 50 per cent during April-August 2011 period, as compared to 20,169 units during same period previous year.

Padmanabhan said that the growth in sales has also led to a high waiting period of around eight months for certain models including Classic primarily because of capacity constraints at its 50-year-old Chennai plant. “We’ve ramped up the capacity to over 70,000 per annum from 55,000 per year in 2010. But the waiting period persists. So we’re setting up a new plant at Oragadam near Chennai with capacity of 1.5 lakh units per annum,” he said.

Royal Enfield has acquired 50 acre land for Rs 30 crore that will be operational in first quarter of calendar year 2013. “The plant expenses will be part of the annual capital expenditure of Rs 30 crore per year,” said Padmanabhan. Royal Enfield had just one per cent growth in 2010. After it migrated from cast iron engines to unit construction engine during that period it saw waiting periods for certain models rise, he added.

Indian Army, the prime customer at the time of the formation of the company and its assembly plant in 1950s, is no more the largest customer. “At present the Army contributes to over one per cent of sales, while a majority of sales come from individual customers who like more powerful motorcycles,” said Padmanabhan.

Royal Enfield, that has 11 brand outlets and 180 dealers across India, will be selling Classic Chrome and Desert Storm, through select brand stores and dealerships.