Business EconomyPosted at: May 18 2026 7:43PM


Royal Enfield Plans ₹2,500-Cr Greenfield Manufacturing Facility in Andhra Pradesh

Tirupati (Andhra Pradesh), May 18 (UNI): Royal Enfield on Monday said it is set to acquire a land parcel in Tada near Tirupati in Andhra Pradesh for a new greenfield manufacturing facility as part of its strategic expansion plans.
The company plans to invest around ₹2,500 crore in the project, which is subject to approval by the board of Eicher Motors.
The facility will be developed in phases based on future demand and market conditions, the company said in a release.
Royal Enfield currently has an annual production capacity of about 14.6 lakh motorcycles, which is nearing full utilisation.
In February 2026, the company announced a ₹958-crore investment for capacity expansion at its Cheyyar facility in Tamil Nadu, which is expected to increase total annual production capacity to 20 lakh units.
Speaking on the expansion plan, B. Govindarajan, Managing Director – Eicher Motors Ltd., and Chief Executive Officer - Royal Enfield, said the Andhra Pradesh investment would support the company’s next phase of growth.
“Royal Enfield's philosophy has always been to stay connected with our community to deliver the best possible products and experiences. 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,” he said.
He also thanked the Andhra Pradesh government for its support, adding that the company already operates more than 100 retail and service outlets in the state and has generated over 1,200 direct and indirect jobs.
As part of its long-term strategy, Royal Enfield continues to evaluate future expansion opportunities globally.
The company currently operates four manufacturing facilities in Tamil Nadu and seven CKD facilities across Bangladesh, Nepal, Brazil, Thailand, Argentina and Colombia. It also has technical centres in Bruntingthorpe in the UK and Chennai in India.
In FY26, Royal Enfield crossed 1.2 million motorcycle sales, marking its second consecutive year of selling over one million units.
The company also ranked highest in two-wheeler initial quality in the 2025 J.D. Power India study and secured the top position in the FADA Dealer Satisfaction Survey.
The company was additionally ranked third among the world’s strongest automobile brands in the Brand Finance Automotive Industry 2026 report.
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