Eicher Motors-owned Royal Enfield on Monday said it plans to invest about Rs 2,500 crore in a new greenfield manufacturing facility in Tirupati, Andhra Pradesh, as the premium motorcycle maker looks to add fresh production capacity amid sustained domestic and export demand.
In a stock exchange filing, the company said it is set to secure a land parcel in Tada near Tirupati for the proposed facility, which will be developed in phases, subject to board approval and future market conditions. The company, however, did not disclose the size of the land parcel.
Royal Enfield currently has an annual manufacturing capacity of around 1.46 million motorcycles, which is operating close to full utilisation. Earlier this year, the company announced a separate Rs 958 crore investment for capacity expansion at its Cheyyar plant in Tamil Nadu, taking its total installed production capacity to around 2 million units annually.
The Andhra Pradesh project marks Royal Enfield’s next major manufacturing expansion as the company strengthens its position in the global mid-sized motorcycle segment.
“This investment in Andhra Pradesh will augment that capacity and provide the impetus for our next phase of growth,” B. Govindarajan, Managing Director of Eicher Motors and CEO of Royal Enfield, said in the exchange filing.
Royal Enfield crossed 1.2 million motorcycle sales in FY26, marking its second consecutive year of selling more than one million units.
The company currently operates four manufacturing facilities in Tamil Nadu and has CKD assembly operations in Bangladesh, Nepal, Brazil, Thailand, Argentina and Colombia.