Royal Enfield Plans Greenfield Manufacturing in Andhra Pradesh

21 May 2026 CW Team

Royal Enfield plans to acquire a land parcel in Tada, Tirupati, Andhra Pradesh to establish a new greenfield manufacturing facility. The company intends to invest Rs 25 billion (25 bn) in the expansion, subject to approval by the company board, and will implement the project in phases aligned to demand and market conditions. The move responds to near full utilisation at existing plants and aims to support future growth.

Royal Enfield currently operates at a capacity of around one point four six million (1.46 mn) motorcycles per year, which the company regards as close to full utilisation. In February the company announced an additional investment of Rs nine point five eight billion (9.58 bn) for capacity expansion in Cheyyar, Tamil Nadu, which will increase total capacity to two million (2 mn) units. The proposed Andhra Pradesh facility is expected to augment that capacity and provide production flexibility.

The company said it currently has four manufacturing facilities in Tamil Nadu and seven complete knock down assembly facilities across Bangladesh, Nepal, Brazil, Thailand, Argentina and Colombia. It operates through more than 3,200 stores in India and in more than 80 countries worldwide and maintains two technical centres in Bruntingthorpe, UK, and Chennai. The expansion was described as part of routine evaluations of long term projects to support global operations.

In the financial year 2026 Royal Enfield delivered its second consecutive year of more than one million motorcycles, crossing one point two million (1.2 mn) units. The company said it ranked highest in two wheeler initial quality in the 2025 J.D. Power India study and secured top position in the FADA Dealer Satisfaction Survey, and that Brand Finance placed it third among the world's strongest automobile brands in 2026. The firm said the investments will underpin product strength, dealer support and a growing global footprint.

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