Royal Enfield eyes new manufacturing facility in Andhra Pradesh, plans to invest ₹2,500 crore

Royal Enfield has announced plans to expand its manufacturing footprint in India with a new greenfield facility in Andhra Pradesh. The company said it is looking to acquire a land parcel in Tada, near Tirupati, for the proposed manufacturing plant as part of its next growth phase.

The motorcycle maker plans to invest around ₹2,500 crore into the project, which will be implemented in phases depending on future demand and market conditions. The proposal remains subject to approval from the company’s board.

The expansion comes as Royal Enfield continues to witness strong global demand. The company’s current annual production capacity hovers around 14.6 lakh motorcycles and is nearing full utilisation. In February 2026, the company had also announced a ₹958 crore investment into its Cheyyar facility in Tamil Nadu, which is expected to increase total production capacity to 20 lakh units annually.

Andhra Pradesh Chief Minister N. Chandrababu Naidu with B. Govindarajan, Managing Director, Eicher Motors Ltd. and CEO, Royal Enfield

Share Via

Andhra Pradesh Chief Minister N. Chandrababu Naidu with B. Govindarajan, Managing Director, Eicher Motors Ltd. and CEO, Royal Enfield

Commenting on the expansion, B. Govindarajan said the Andhra Pradesh investment would support the brand’s future growth plans while strengthening its manufacturing presence in southern India.

Royal Enfield currently operates four manufacturing facilities in Tamil Nadu and seven CKD assembly plants globally. The bikemaker added that it already has more than 100 retail and service touchpoints in Andhra Pradesh and has generated over 1,200 direct and indirect employment opportunities in the state so far.

Over one million motorcycle sales globally

Royal Enfield also reported that FY26 marked its second consecutive year of crossing one million motorcycle sales globally, with total dispatches exceeding 1.2 million units during the financial year. The company additionally highlighted its rankings in the 2025 J.D. Power India two-wheeler initial quality study and the FADA dealer satisfaction survey.

In April 2026, the company registered total sales of 1,13,164 motorcycles, reflecting a 31% year-on-year growth compared to the 86,559 units sold in the same month previous year. The growth largely hinged on demand in the domestic market, with sales on our shores rising by 37% to 1,04,129 units. Exports, on the other hand, saw a decline of 14%, dropping to 9,035 units from 10,557 units in April 2025.

Get insights into Upcoming Cars In India, Electric Vehicles, Upcoming Bikes in India and cutting-edge technology transforming the automotive landscape.