Royal Enfield to set up ₹2,200 cr unit in Andhra, expand outside Tamil Nadu

The company will invest approximately Rs 2,200 cr in two phases to establish a state-of-the-art manufacturing facility at Satyavedu in Tirupati district, close to Andhra Pradesh-Tamil Nadu border

Royal Enfield will invest ₹2,200 crore in Andhra Pradesh for a new manufacturing facility, marking the motorcycle maker’s first major expansion outside Tamil Nadu since its inception in 1901. 

The company said it will build the facility in two phases in Satyavedu mandal in Tirupati district, near the Andhra Pradesh-Tamil Nadu border, to add nearly 900,000 units to its manufacturing capacity and strengthen India’s position as an international motorcycle-making hub. 

The Andhra Pradesh State Investment Promotion Board approved the project at a meeting chaired by Andhra Pradesh Chief Minister N Chandrababu Naidu earlier this week. 

Andhra Pradesh has allocated 267 acres of land for the project in Vanelluru and Rallakuppam villages in Satyavedu. The facility is expected to generate around 5,000 direct and indirect employment opportunities. 

 

Apart from the core manufacturing unit, the project’s first phase will include a dedicated vendor park that will help bring the company’s supplier ecosystem to Andhra Pradesh. It will accelerate the development of a “world-class” automotive manufacturing cluster in the state. The first phase is targeted for completion by 2029 and the second by 2032. 

“Royal Enfield is far more than a motorcycle brand — it is a timeless symbol of heritage, craftsmanship and enduring quality. We are proud to welcome this iconic company to Andhra Pradesh,” said Nara Lokesh, Minister for Education, IT & Electronics, and Human Resources Development. 

“This investment is a strong endorsement of Andhra Pradesh’s speed of doing business, robust infrastructure ecosystem and our commitment to becoming a leading manufacturing destination in India. Beyond the plant itself, the vendor ecosystem and ancillary industries that will emerge around this project will significantly strengthen our vision of building a globally competitive automobile and advanced manufacturing hub,” he said. 

Royal Enfield’s facility is expected to strengthen industrial development in southern Andhra Pradesh, reinforcing the state’s reputation as a preferred destination for large manufacturing investments across sectors, including mobility, electronics and renewable energy.