Royal Enfield is set to strengthen its manufacturing footprint in India with plans to establish a new greenfield production facility in Tada, Tirupati district of Andhra Pradesh, as the company prepares for its next phase of growth amid rising demand and increasing capacity utilisation.
The mid-size motorcycle maker plans to invest approximately ₹2,500 crore in the proposed facility, which will be developed in a phased manner subject to approval from the company’s board. The investment is intended to support future demand requirements while offering flexibility to align with market conditions and business expansion plans.
The move comes as Royal Enfield’s existing annual production capacity of around 14.6 lakh motorcycles approaches near-full utilisation. Earlier this year, in February 2026, the company announced an additional investment of ₹958 crore towards expanding capacity at its Cheyyar plant in Tamil Nadu, a move expected to increase overall production capability to nearly 20 lakh units annually.
Mr. B. Govindarajan, Managing Director of Eicher Motors and Chief Executive Officer of Royal Enfield, said the company’s strategy has consistently focused on staying closely connected to its rider community while building products and experiences that reflect evolving customer expectations. He noted that the proposed Andhra Pradesh investment would further strengthen manufacturing capabilities and support Royal Enfield’s future growth ambitions.
He also highlighted the company’s growing association with Andhra Pradesh, noting that Royal Enfield has already established over 100 retail and service outlets in the state and generated more than 1,200 direct and indirect employment opportunities, contributing to the local industrial ecosystem.
Royal Enfield currently operates four manufacturing facilities in Tamil Nadu and has established a global production network through seven CKD facilities across Bangladesh, Nepal, Brazil, Thailand, Argentina and Colombia. The company also has a widespread retail presence through more than 3,200 stores across India and over 80 international markets. Its technical development capabilities are supported by engineering centres in Chennai and Bruntingthorpe in the UK.
The proposed expansion follows a strong year of growth for Royal Enfield. In FY26, the company surpassed 1.2 million motorcycle deliveries, marking its second consecutive year of crossing the one-million-unit milestone. It also secured the top position in two-wheeler initial quality rankings in the 2025 J.D. Power India study and emerged as the leading performer in the FADA Dealer Satisfaction Survey.
Further reinforcing its global positioning, Royal Enfield was ranked third among the world’s strongest automobile brands in the 2026 Brand Finance Automotive Industry report, underlining the growing international appeal of the iconic motorcycle marque.
