Business EconomyPosted at: May 18 2026 5:47PM


Royal Enfied to acquire land parcel in AP for Rs 2,500 cr greenfield manufcuring facility

Chennai, May 18 (UNI) Royal Enfield, the global leader in the mid-size (250cc–750cc) motorcycle segment, will secure a land parcel
for setting up a new greenfield manufacturing facility at Tada near Tirupati in neighbouring Andhra Pradesh involving a Rs 2,500 crore investment for this expansi0n.
Subject to approval by the company’s board, the project will be implemented in a phased manner, calibrated to future demand and market conditions, a company statement here on Monday said.
Noting that the company's current capacity of around 14.6 lakh motorcycles per year is close to full utilisation, it said in February 2026, Royal Enfield announced a Rs 958 crore investment for capacity expansion at Cheyyar in Tamil Nadu which will increase the total capacity to 20 lakh 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 two 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 Andhra Pradesh Government 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", he said.
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 in Chennai, India.
In FY’26, 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 and secured top position in the FADA Dealer Satisfaction Survey.
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