Royal Enfield to invest Rs 2,500 crore in new Andhra Pradesh plant

Royal Enfield will invest Rs 2,500 crore in a new Andhra Pradesh manufacturing facility as it expands production capacity to meet demand and support future growth plans.

Royal Enfield has announced plans to acquire land in Tada, near Tirupati in Andhra Pradesh, for a new greenfield manufacturing facility as the company gears up for its next phase of expansion amid rising domestic and global demand.

The Chennai-based motorcycle maker said it intends to invest around Rs 2,500 crore in the proposed facility, subject to approval from the board of Eicher Motors. The project will be executed in phases depending on market demand and future business conditions.

The move comes at a time when Royal Enfield’s existing production network is operating close to full capacity. The company currently has an annual manufacturing capacity of approximately 14.6 lakh motorcycles. Earlier this year, in February 2026, Royal Enfield had also announced an investment of Rs 958 crore to expand its Cheyyar plant in Tamil Nadu, which is expected to raise total annual production capacity to 20 lakh units.

Commenting on the expansion, B. Govindarajan said the investment in Andhra Pradesh would help support the company’s long-term growth ambitions while strengthening its manufacturing footprint in southern India.

He added that Royal Enfield already has a significant presence in Andhra Pradesh through more than 100 retail and service touchpoints, while also generating over 1,200 direct and indirect employment opportunities in the state.

Royal Enfield currently operates four manufacturing facilities in Tamil Nadu and 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.

The announcement follows another strong financial year for the motorcycle manufacturer. In FY2025-26, Royal Enfield crossed 1.2 million motorcycle sales globally, marking its second consecutive year of selling over one million units. The brand also secured the top rank in the 2025 J.D. Power India two-wheeler initial quality study and emerged as the highest-ranked manufacturer in the FADA Dealer Satisfaction Survey.

Further highlighting its growing international presence, Royal Enfield was recently ranked third among the world’s strongest automobile brands in the Brand Finance Automotive Industry 2026 report.

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