Royal Enfield to Set Up New Greenfield Plant in Andhra Pradesh With ₹2,500 Crore Investment

Published on 18 May, 2026, 1:48 PM IST
Updated on 18 May, 2026, 1:57 PM IST
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The expansion comes as Royal Enfield's existing production capacity of approximately 14.6 lakh motorcycles per year nears full utilisation. 

Royal Enfield, the leader in the mid-size motorcycle segment (250cc-750cc), is working to acquire land in Tada, Tirupati district of Andhra Pradesh, for a new greenfield manufacturing facility. The company is looking to pump in around ₹2,500 crores into the project, which will be executed in phases based on demand and market conditions, pending board approval.

The expansion comes as Royal Enfield's existing production capacity of approximately 14.6 lakh motorcycles per year nears full utilisation. 

Earlier in February 2026, the company had announced a ₹958 crore investment for a capacity expansion at its Cheyyar facility in Tamil Nadu, which is expected to push total annual capacity to 20 lakh units.

B. Govindarajan, Managing Director of Eicher Motors and CEO of Royal Enfield, was quoted as saying, "Royal Enfield's philosophy has always been to stay connected with our community to deliver the best possible products and experiences. We currently operate four world-class manufacturing facilities in Tamil Nadu, with a total projected capacity of 2 million units annually."

He added: "This investment in Andhra Pradesh will augment that capacity and provide the impetus for our next phase of growth. We are grateful to the Government of Andhra Pradesh for their support and partnership as we strengthen our presence in a state with immense potential. Having already established over 100 retail and service outlets and more than 1,200 direct and indirect employment opportunities, we are proud to contribute to its industrial and economic landscape."

Beyond its four Tamil Nadu plants, Royal Enfield runs seven CKD assembly facilities across Bangladesh, Nepal, Brazil, Thailand, Argentina and Colombia. 

The brand retails through over 3,200 stores in India and has a presence in more than 80 countries. Its research and development operations are anchored by two technical centres, one in Bruntingthorpe, UK, and another in Chennai, India.

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Royal Enfield new plant Andhra Pradesh
Royal Enfield Tada Tirupati factory
Royal Enfield greenfield manufacturing
Royal Enfield Rs 2500 crore investment

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