Royal Enfield has announced plans to set up a new greenfield manufacturing facility in Andhra Pradesh, with an investment of around Rs 2,500 crore — one of the company’s largest single investments in a new plant.
Where and When
The proposed site is in Tada, near Tirupati. The project will be implemented in phases and remains subject to board approval.
Why This Investment Now
Royal Enfield’s current annual production capacity stands at around 14.6 lakh units — and that capacity is nearing full utilisation. The company sold over 1.2 million motorcycles in FY26, its second consecutive year of crossing the 1-million mark.
Earlier this year, in February 2026, Royal Enfield also announced a Rs 958 crore capacity expansion at its existing Cheyyar facility in Tamil Nadu. Once complete, the total production capacity is expected to reach 20 lakh units annually.
A Global Motorcycle Brand
Royal Enfield currently operates four manufacturing facilities in Tamil Nadu and has seven CKD (completely knocked down) assembly plants globally — in Bangladesh, Nepal, Brazil, Thailand, Argentina, and Colombia.
The brand retails motorcycles in more than 80 countries through over 3,200 stores worldwide. In 2025, Royal Enfield ranked highest in two-wheeler initial quality in the J.D. Power India study and secured the top position in the FADA Dealer Satisfaction Survey.
The Bigger Picture
This investment signals Royal Enfield’s confidence in sustained global demand for its mid-size motorcycles. As the company prepares for the next phase of growth, the Andhra Pradesh plant will play a critical role in ensuring supply can keep pace with demand across India and export markets.
Key Takeaways
- Rs 2,500 crore greenfield plant proposed in Tada, Andhra Pradesh
- Current capacity of 14.6 lakh units nearing full utilisation
- Combined with Cheyyar expansion, total capacity to reach 20 lakh units annually
- Royal Enfield sold over 1.2 million motorcycles in FY26, second consecutive year above 1 million
