Royal Enfield will invest Rs 1,225 crore in the first phase of its upcoming greenfield manufacturing facility in Andhra Pradesh to add production capacity as the premium motorcycle maker prepares for its next phase of growth.
The board of parent Eicher Motors has approved the investment for Phase I of the project, which, at full utilisation, will be capable of producing an additional 4.5 lakh motorcycles annually. The capacity expansion is expected to be completed during the 2029-30 financial year, subject to market conditions.
"The board has approved an investment of Rs 1,225 Crores for Phase I of the greenfield expansion in Andhra Pradesh, which at full utilisation can produce an additional 4.5 lakh motorcycles per year. The above capacity addition is expected to be completed during FY 2029-30, subject to market conditions," the company’s management said.
The approval marks the next step in Royal Enfield's plan to establish a new manufacturing base in Andhra Pradesh, its first production facility outside Tamil Nadu. The company had announced earlier this year that it planned to invest total of Rs 2,500 crore in the greenfield project, which will be developed in phases to support rising domestic and export demand.
Once fully developed, the Andhra Pradesh facility is expected to significantly expand Royal Enfield's manufacturing footprint and support future volume growth in the mid-sized motorcycle segment. The first phase alone will add 4.5 lakh units of annual production capacity.
The project forms part of Royal Enfield's broader capacity expansion programme as the company seeks to meet growing demand for its motorcycles in India and overseas. Earlier this year, the company also announced capacity expansion at its Cheyyar manufacturing plant in Tamil Nadu to increase production at its existing facilities.
The Andhra Pradesh investment was first announced in May, when the company said it would acquire land near Tirupati for a phased manufacturing facility. At the time, Royal Enfield said the project would strengthen its manufacturing network and provide the foundation for its next stage of growth.