Royal Enfield To Invest Rs 2,500 Crore In New Andhra Pradesh Plant

PUNE: Royal Enfield, the 250-750 cc motorcycle maker, on Monday announced that it will invest Rs 2,500 crore in a new Andhra Pradesh manufacturing facility to expand production capacity amid rising domestic and global demand.

The Chennai-based company will acquire 215.7-acre land in Tada, near Tirupati in Andhra Pradesh, for a new greenfield factory and execute the project in phases depending on market demand and future business conditions.

The first phase of the factory construction is likely to be completed in 2029 and the second in 2032. The expansion project will also include a vendor park, which is expected to be completed during the first phase.

At present Royal Enfield’s existing production network is operating close to full capacity.

“Currently, the company has a capacity of around 14.6 lakh motorcycles per year, which is close to full utilization,” Royal Enfield said in a statement.

In February 2026, Royal Enfield announced a Rs 958 crores investment for capacity expansion in Cheyyar plant in Tamil Nadu which will increase the total capacity to 20 lakh units per year.

In FY 2025-26, Royal Enfield crossed 1.2 million motorcycle sales globally, marking its second consecutive year of selling over one million units.

“We currently operate four world-class manufacturing facilities in Tamil Nadu, with a total projected capacity of 2 million units annually. This investment in Andhra Pradesh will augment that capacity and provide the impetus for our next phase of growth,” said B. Govindarajan, MD at Eicher and CEO at Royal Enfield.

Apart from the four manufacturing facilities in Tamil Nadu, Royal Enfield has seven CKD assembly units globally across Bangladesh, Nepal, Brazil, Thailand, Argentina and Colombia.

The company also runs technical centres in Chennai and Bruntingthorpe in the United Kingdom.