NEW DELHI: Royal Enfield, the two-wheeler division of Eicher Motors, will invest Rs 500 crore this year on various activities, including setting up of two technology centres and increasing its production capacity to 4.5 lakh units annually. 

"Royal Enfield will be investing Rs 500 crore in 2015 towards product development, capex and other development areas," Eicher Motors Ltd Managing Director & CEO Siddhartha Lal said in a statement.

 
As part of its overall business expansion plans, the firm will set up two technology centres - one in Chennai and another in the UK. 

"With a view to become the leader in the global mid-sized motorcycling, Royal Enfield will build two new technology centers," Lal said. 

He said the larger one will be at a new 4.5 acre property that the company has acquired on Old Mahabalipuram Road in Chennai and will be operational by second quarter of 2016. 

"A smaller satellite center is being set up in Leicestershire, UK and will be operational by the end of 2015," Lal said. 

These technology centres will significantly enhance the company's capability to execute its long term product strategy, he added. 

The Chennai-based firm is increasing its manufacturing capacity to 4.5 lakh units annually as against 4 lakh units at present. 

Commenting on enhancing the production capacity, Lal said: "Royal Enfield continues to grow at a phenomenal pace and this year we have achieved our best ever sales of over 3,00,000 units. In 2015, we plan to manufacture 4,50,000 units." 

Royal Enfield currently sells various models, including Bullet, Classic, Thunderbird and Continental GT.