Royal Enfield has announced plans to set up a new greenfield manufacturing facility in Andhra Pradesh as the company looks to expand production capacity amid rising demand. The new plant is proposed to be set up at TADA near Tirupati, in which the company is planning to invest around Rs 2,500 crore.The project will be implemented in phases and will be subject to approval from the board of the company. Royal Enfield said the expansion plans will be in line with future market demand and business conditions.At present, the motorcycle manufacturer’s annual production capacity is about 14.6 lakh units, which is close to full utilization. Earlier this year, in February 2026, the company had also announced an investment of Rs 958 crore for capacity expansion at its Cheyyar facility in Tamil Nadu. That expansion is expected to take Royal Enfield’s total production capacity to 2 million units annually. Royal Enfield currently operates four manufacturing facilities in Tamil Nadu and also has seven CKD assembly plants globally in Bangladesh, Nepal, Brazil, Thailand, Argentina and Colombia. The brand sells motorcycles in over 80 countries and operates through over 3,200 stores worldwide.This expansion comes at a time when Royal Enfield continues to see strong demand globally. In FY26, the company crossed 1.2 million motorcycle sales for the second consecutive year with over one million units sold annually. The company also ranked highest in initial quality of two-wheelers in the 2025 JD Power India study and topped the FADA dealer satisfaction survey.
Royal Enfield to invest Rs 2,500 crore in new plant in Andhra Pradesh: Details
