Royal Enfield has announced plans to establish a new greenfield manufacturing facility in Andhra Pradesh as the company seeks to expand production capacity in response to rising demand. The proposed plant will be located in Tada, near Tirupati, with an estimated investment of around Rs 2,500 crore.
Phased Implementation and Board Approval
The project will be implemented in phases and remains subject to approval from the company’s board. Royal Enfield stated that the expansion plans will be aligned with future market demand and overall business conditions.
Current Production Capacity
Currently, the motorcycle manufacturer has an annual production capacity of approximately 14.6 lakh units, which is nearing full utilisation. Earlier this year, in February 2026, the company announced an investment of Rs 958 crore for capacity expansion at its Cheyyar facility in Tamil Nadu. That expansion is expected to increase Royal Enfield’s overall production capacity to 20 lakh units annually.
Global Manufacturing Footprint
Royal Enfield currently operates four manufacturing facilities in Tamil Nadu and has seven CKD assembly plants globally across Bangladesh, Nepal, Brazil, Thailand, Argentina, and Colombia. The brand sells motorcycles in more than 80 countries and operates through over 3,200 stores worldwide.
Strong Market Performance
The expansion comes at a time when Royal Enfield continues to experience strong global demand. In FY26, the company surpassed 1.2 million motorcycle sales for the second consecutive year, maintaining its streak of selling over one million units annually. Additionally, 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.
