Royal Enfield Allocates Rs 2,200 Crore for New Plant in Andhra Pradesh

Royal Enfield is establishing a new manufacturing facility and vendor park in Andhra Pradesh with an investment of Rs 2,200 crore, as reported by The Economic Times. This development marks the motorcycle maker's first expansion outside of Tamil Nadu since it began operations there in 1955.

The new facility will be located on a 276 acre site spanning the villages of Vanelluru and Rallakuppam in the Satyavedu region of Tirupati district. The project received clearance from the Andhra Pradesh State Investment Promotion Board, which is chaired by Chief Minister N Chandrababu Naidu.

The expansion is planned in two phases. The first phase, which includes the construction of a dedicated vendor park, is scheduled for completion by 2029. The second phase is expected to be operational by 2032. Once fully completed, the plant will increase Royal Enfield's annual production capacity by 9 lakh units, building upon its current capacity of nearly 15 lakh motorcycles. The automaker also estimates that the new manufacturing unit will create 5,000 direct and indirect employment opportunities.

Andhra Pradesh IT and Electronics Minister Nara Lokesh confirmed the investment details in a statement to The Economic Times, noting that the project aligns with the state's efforts to build an advanced automobile manufacturing ecosystem.