Eicher Motors To Invest Rs 2,500 Crore In Andhra Pradesh For New Royal Enfield Manufacturing Facility: Here’s Details

Indian equity benchmark indices ended marginally higher on Monday, with the benchmark Nifty 50 index rising 0.03 per cent to settle at 23,649.95. Despite weak sentiment across select automobile stocks, shares of Eicher Motors remained in focus after Royal Enfield announced plans for a major manufacturing expansion in Andhra Pradesh. On Monday, Eicher Motors share price declined 1.45 per cent to close at Rs 6,913.

Royal Enfield Plans Rs 2,500 Crore Greenfield Expansion

Eicher Motors informed exchanges that Royal Enfield plans to acquire a land parcel in Tada (Tirupati), Andhra Pradesh, for setting up a new greenfield manufacturing facility.

According to the company, the proposed expansion will involve an investment of around Rs 2,500 crore and will be implemented in a phased manner, subject to approval by the company’s board. The company stated that the expansion is being planned in line with future demand growth and evolving market conditions.

Capacity Expansion Plans

Currently, Royal Enfield operates with an annual manufacturing capacity of around 14.6 lakh motorcycles, which the company stated is nearing full utilisation.

Earlier in February 2026, Royal Enfield had announced an additional investment of Rs 958 crore for capacity expansion at its Cheyyar facility in Tamil Nadu. Following this expansion, the company’s total annual production capacity is expected to increase to around 20 lakh units.

Management Commentary

Commenting on the strategic expansion plan, B. Govindarajan, Managing Director of Eicher Motors and Chief Executive Officer of 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.”

He further added:

“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.”

Business Highlights

The company stated that Royal Enfield crossed 1.2 million motorcycle sales during FY26, marking its second consecutive year of delivering over one million motorcycles globally.

Royal Enfield also 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.

Additionally, the company ranked third among the world’s strongest automobile brands in the Brand Finance Automotive Industry 2026 report.

About Eicher Motors

Eicher Motors is the parent company of Royal Enfield and is engaged in manufacturing premium motorcycles and commercial vehicles. Royal Enfield operates across India and more than 80 countries globally with manufacturing facilities in India and CKD assembly operations across multiple international markets.

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Disclaimer: This article is for informational purposes only and not investment advice.