- Eicher Motors approved Rs 1,225 crore for phase one of Royal Enfield's plant in Andhra Pradesh
- Phase one will produce 4.5 lakh motorcycles annually, boosting Royal Enfield's manufacturing capacity
- Current Tamil Nadu plants produce 15 lakh units annually, expanding to 20 lakh by FY2028
Eicher Motors has approved an investment of Rs 1,225 crore for the first phase of Royal Enfield's upcoming greenfield manufacturing facility in Andhra Pradesh, marking a major step in the company's long-term expansion strategy as demand for its motorcycles continues to grow in India and overseas.
The investment, cleared by the company's board on July 29, forms part of the previously announced Rs. 2,500 crore plan to establish a new manufacturing facility in the state. Phase I will be financed entirely through internal accruals and is expected to be completed by FY2030.
The first phase of the plant will have an annual production capacity of 4.5 lakh motorcycles at full utilisation, significantly strengthening Royal Enfield's manufacturing footprint.
The expansion comes as Royal Enfield's existing factories are moving closer to full capacity.
The company currently has an annual production capacity of around 15 lakh motorcycles across its Oragadam and Vallam Vadagal plants in Tamil Nadu. It is also expanding its Cheyyar facility through a brownfield project, which is expected to be completed by FY2028, taking the combined capacity of its Tamil Nadu operations to around 20 lakh units annually.
Also Read: Eicher Motors Q1 Results, Royal Enfield-Maker Posts 21% Jump In Profit; Revenue Meets Estimates
With the Andhra Pradesh facility's first phase operational, Royal Enfield's total annual manufacturing capacity will rise to around 24.5 lakh motorcycles, giving the company additional headroom to meet rising domestic demand while supporting its growing export business.
The new plant is expected to play an important role in Royal Enfield's next phase of growth as the company continues to strengthen its position in the global mid-size motorcycle segment. In recent years, the motorcycle maker has expanded into several international markets and broadened its product portfolio with new launches aimed at both Indian and overseas customers.
The Andhra Pradesh project was first announced in May this year, when Eicher Motors unveiled plans to build the facility in phases with a total planned investment of around Rs 2,500 crore.
In a regulatory filing, Eicher Motors said the investment has been approved to ensure the company is well prepared for future growth opportunities and increasing market demand.
The capacity addition also reflects Royal Enfield's confidence in the long-term outlook for premium motorcycles. The company has consistently reported strong sales driven by popular models such as the Classic 350, Hunter 350, Meteor 350 and Himalayan, while expanding its presence across Europe, Latin America and Asia-Pacific markets.
Also Read: Eicher Skids 6.5% As New Delhi EV Policy Leaves Royal Enfield Sputtering
Essential Business Intelligence, Sharp Market Insights, Practical Personal Finance Advice, Daily Fuel, Gold and Silver Prices and Latest Stories — On NDTV Profit.
