Eicher Motors' Royal Enfield Plans ₹2,500 Crore Greenfield Expansion in Andhra Pradesh
Royal Enfield plans a ₹2,500 crore greenfield manufacturing expansion in Andhra Pradesh. The investment is subject to board approval and will be implemented in phases. This expansion aims to augment capacity as current utilization nears full capacity. The company sold over 1.2 million motorcycles in FY'26.
A ₹2,500 crore investment in a new manufacturing facility is a major strategic move that will significantly impact the company's production capacity, market presence, and future growth trajectory.
The announcement details a significant expansion plan with substantial investment, indicating positive growth prospects for the company.
Eicher Motors Limited, through its Royal Enfield division, has announced plans for a significant manufacturing expansion by acquiring a land parcel in Tada (Tirupati), Andhra Pradesh, for a new greenfield facility. The company intends to invest approximately ₹2,500 crores in this expansion, which will be implemented in phases, subject to board approval and calibrated to future demand.
This strategic move comes as Royal Enfield's current capacity of around 14.6 lakh motorcycles per year is nearing full utilization. The planned investment in Andhra Pradesh will augment the existing capacity, which is set to increase to 20 lakh units with a ₹958 crores investment for capacity expansion in Cheyyar, Tamil Nadu, announced in February 2026.
B. Govindarajan, Managing Director of Eicher Motors Ltd. and CEO of Royal Enfield, stated that the new facility will provide impetus for the company's next phase of growth. He expressed gratitude to the Government of Andhra Pradesh for their support in strengthening the company's presence in the state.
Royal Enfield has a global presence with four manufacturing facilities in Tamil Nadu, seven CKD facilities across various countries, and over 3200 stores in India and 80+ countries. In FY’26, the company sold over 1.2 million motorcycles. The brand also ranked third among the World's Strongest Automobile Brands in the Brand Finance Automotive Industry 2026 report.
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