The company plans to invest approximately ₹2,500 crore for the greenfield expansion. Subject to approval by the company's board, the project will be implemented in a phased manner, calibrated to future demand and market conditions.
Currently, the company has a capacity of around 1.46 million motorcycles per year, which is close to full utilisation. In February 2026, Royal Enfield announced a ₹958 crore investment for capacity expansion in Cheyyar, Tamil Nadu, which will increase the total capacity to 2 million units.
Speaking on the strategic expansion plan, B Govindarajan, managing director, Eicher Motors Ltd, and chief executive officer, Royal Enfield, said, "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. 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."
As part of its long-term growth trajectory, Royal Enfield routinely evaluates options for future projects. Currently, the company has four world-class manufacturing facilities in Tamil Nadu, India, and seven CKD facilities across Bangladesh, Nepal, Brazil (2), Thailand, Argentina, and Colombia. It operates through more than 3,200 stores across India and 80+ countries around the globe. Royal Enfield's two world-class technical centres are located in Bruntingthorpe, UK, and Chennai, India.
In FY26, Royal Enfield delivered its second consecutive year of over one million motorcycles, crossing 1.2 million units. The company ranked highest in two-wheeler initial quality in the 2025 J.D. Power India study and secured the top position in the FADA Dealer Satisfaction Survey.