Royal Enfield is preparing for the next phase of its growth. The motorcycle maker will increase its annual production capacity from 14.6 lakh units to 20 lakh units. To support this expansion, parent company Eicher Motors has approved an investment of Rs 958 crore.
Royal Enfield expands production capacity : Main Details
This decision has been taken when the demand for Royal Enfield motorcycles is continuously increasing. According to a regulatory filing, the company’s existing manufacturing facilities are operating at almost full capacity. To create additional headroom, Royal Enfield will increase production at its Cheyyar plant in Tamil Nadu.The capacity expansion will be implemented in phases. The work is scheduled to begin in the first quarter of FY 2026-27 and is expected to be completed by FY 2027-28. Once completed, the move will increase the plant’s annual production capacity by 37 percent, taking the total production capacity to 20 lakh motorcycles per year.
The timing of the investment reflects Royal Enfield’s strong sales momentum. In 2025, the company recorded its highest ever annual sales, crossing the one million mark for the first time. It sold 10,71,809 motorcycles during the year. Exports also did well, with 1,32,132 units shipped to international markets.Royal Enfield is continuously expanding both in India and abroad. With demand increasing across various sectors and geographies, the additional production capacity is aimed at reducing waiting periods and supporting future growth plans. Stay connected to TOI Auto for latest updates on the automotive sector and follow us on our social media handles on Facebook, Instagram and Xpress.
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