Royal Enfield To Set Up Andhra Pradesh Plant; Rs 2,500 Crore Investment Planned

Royal Enfield plans a new manufacturing facility in Andhra Pradesh with a proposed Rs 2,500 crore investment to support future growth and rising production demand.

18 May 2026, 11:57 · www.ndtv.com

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Royal Enfield plans a greenfield manufacturing facility in Andhra Pradesh with Rs 2,500 crore investment
Current production capacity is 14.6 lakh motorcycles annually, nearing full utilization
A Rs 958 crore expansion in Tamil Nadu will raise total capacity to 20 lakh units by 2026

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Royal Enfield, the global leader in the mid-size (250cc-750cc) motorcycle segment, is set to secure a land parcel for a new greenfield manufacturing facility in Tada (Tirupati), Andhra Pradesh.The company plans to invest approximately Rs 2,500 crores for the greenfield expansion. Subject to approval by the company's board, the project will be implemented in a phased manner, calibrated to future demand and market conditions.

Currently, the company has a capacity of around 14.6 Lakh motorcycles per year, which is close to full utilisation. In February 2026, Royal Enfield announced a Rs 958 crores investment for capacity expansion in Cheyyar Tamil Nadu which will increase the total capacity to 20 lakh units.

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Speaking on the strategic expansion plan, B. Govindarajan, Managing Director - Eicher Motors Ltd., and Chief Executive Officer - Royal Enfield said, "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."

Adding further, he said- "This investment in Andhra Pradesh will augment that capacity and provide the impetus for our next phase of growth. We are grateful to the Government of Andhra Pradesh for their support and partnership as we strengthen our presence in a state with immense potential. Having already established over 100 retail and service outlets and more than 1,200 direct and indirect employment opportunities, we are proud to contribute to its industrial and economic landscape."

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As part of its long-term growth trajectory, Royal Enfield routinely evaluates options for future projects. Currently, the company has four world-class manufacturing facilities in Tamil Nadu, India and seven CKD facilities across Bangladesh, Nepal, Brazil (2), Thailand, Argentina and Colombia. It operates through more than 3200 stores across India and 80+ countries around the globe. Royal Enfield's two world-class technical centres are located in Bruntingthorpe, UK, and in Chennai, India.

In FY'26, Royal Enfield delivered its second consecutive year of over one million motorcycles, crossing 1.2 million units. The company ranked highest in two-wheeler initial quality in the 2025 J.D. Power India and secured top position in the FADA Dealer Satisfaction Survey.

Strengthening its position as a truly global Indian brand, Royal Enfield also ranked third among the World's Strongest Automobile Brands in the Brand Finance Automotive Industry 2026 report.

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