Key Highlights
- Royal Enfield plans to acquire land in Andhra Pradesh for a new greenfield manufacturing facility.
- The company plans to invest around ₹2,500 crore in the phased expansion project.
- The proposed facility will be located in Tada near Tirupati in Andhra Pradesh.
- Royal Enfield’s current annual production capacity stands at around 14.6 lakh motorcycles.
- The company delivered more than 12 lakh motorcycles in FY26 for the second consecutive year.
Royal Enfield has announced plans to establish a new greenfield manufacturing facility in Andhra Pradesh as part of its long-term growth and capacity expansion strategy. The company said it intends to acquire a land parcel in Tada near Tirupati for the proposed project.
According to the company, the planned investment for the expansion project is estimated at approximately ₹2,500 crore. The project remains subject to approval from the company’s board and will be executed in phases based on market demand and future business conditions.
Royal Enfield currently operates with an annual production capacity of nearly 14.6 lakh motorcycles, which the company said is approaching full utilisation. Earlier in February 2026, the company announced an investment of ₹958 crore for capacity expansion at its Cheyyar facility in Tamil Nadu. The expansion is expected to increase total production capacity to around 20 lakh units annually.
Commenting on the development, B. Govindarajan, Managing Director of Eicher Motors and Chief Executive Officer of Royal Enfield, said the proposed Andhra Pradesh investment would support the company’s next phase of growth and strengthen its manufacturing capabilities.
The company also highlighted its existing presence in Andhra Pradesh, where it currently operates more than 100 retail and service touchpoints. Royal Enfield said it has generated over 1,200 direct and indirect employment opportunities in the state.
Royal Enfield presently operates four manufacturing facilities in Tamil Nadu and has CKD facilities across several international markets including Bangladesh, Nepal, Brazil, Thailand, Argentina and Colombia. The motorcycle maker said it has a retail network of more than 3,200 stores across India and over 80 countries globally.
The company stated that its two technical centres are located in Bruntingthorpe in the United Kingdom and Chennai in India.
In FY26, Royal Enfield reported its second consecutive year of motorcycle sales exceeding one million units, crossing 12 lakh units during the financial year. The company also said it secured the highest rank in two-wheeler initial quality in the 2025 J.D. Power India study and achieved the top position in the FADA Dealer Satisfaction Survey.