Eicher Motors Lines Up ₹2,200 Crore Capex For Royal Enfield As Demand Remains Strong

Eicher Motors Ltd is accelerating investments in manufacturing capacity, new products and electric vehicles as demand for premium motorcycles continues to remain strong in India and overseas markets.

The company plans to invest around ₹2,200 crore at Royal Enfield in FY27, of which nearly ₹1,000 crore will go towards capacity expansion, while the remaining amount will be used for new product development and electric vehicle programmes.

“The capex at Royal Enfield level, the capital which we have given is about ₹2,200 crore. Of which capacity expansion as we mentioned is around ₹1,000 crore. Remaining investments are towards the new product development and electric vehicle development,” B. Govindarajan, Managing Director - Eicher Motors Ltd and Chief Executive Officer - Royal Enfield, said during a media interaction.

The investment comes as Royal Enfield continues to witness strong growth in the premium motorcycle segment. The company sold over 12.27 lakh motorcycles in FY26, marking its second consecutive year of crossing the one million sales milestone. Domestic sales rose 23 percent during the year, while exports grew 20 percent.

Earlier this year, Eicher Motors approved a ₹958 crore brownfield expansion plan at its Cheyyar facility in Tamil Nadu, which will raise Royal Enfield’s annual motorcycle production capacity to around 20 lakh units by FY28 from 14.6 lakh units currently. The company also operates manufacturing facilities at Vallam Vadagal and Oragadam in the state.

The company has also signed an agreement with the Andhra Pradesh government to set up a new greenfield manufacturing facility near Tirupati as part of its long-term expansion plans. According to an earlier company announcement, Royal Enfield plans to invest around ₹2,500 crore in the proposed Andhra Pradesh facility over multiple phases.

Management said current demand trends continue to remain healthy despite geopolitical uncertainties and supply chain disruptions. In the month of April 2026, the company sold about 1.13 lakh motorcycles, representing a growth of 31% over the year-ago period. 

“Structurally, I’m seeing [that] the demand is continuing,” Govindarajan said. Enquiry levels remain strong and dealer inventory is currently at around seven to eight days, reflecting tight supply conditions amid rising demand, he added.