Royal Enfield targets future growth with new greenfield facility in Andhra Pradesh


Royal Enfield is preparing for its next chapter of expansion with plans to establish a new greenfield manufacturing facility in Tada, Andhra Pradesh. The proposed INR 2,500 crore investment comes as the iconic motorcycle marque continues to witness sustained global demand and production volumes operating close to full capacity.

18/05/2026

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CHENNAI

Royal Enfield, the global leader in the mid-size motorcycle segment spanning 250cc to 750cc, is preparing to secure a land parcel for a new greenfield manufacturing facility in Tada, Tirupati, Andhra Pradesh, marking another decisive step in the brand’s long-term expansion strategy.

The company is planning an investment of approximately ₹2,500 crores for the proposed greenfield project. Subject to approval from the company’s board, the expansion will be executed in phases, aligned with future demand projections and prevailing market conditions.

The development arrives at a crucial juncture for Royal Enfield, whose current annual production capacity of around 14.6 lakh motorcycles is operating close to full utilisation. Earlier, in February 2026, the company had announced an investment of ₹958 crores towards capacity expansion at its Cheyyar facility in Tamil Nadu, a move expected to increase its total manufacturing capacity to 20 lakh units annually.

Commenting 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 2 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 Government of Andhra Pradesh 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 broader long-term growth trajectory, Royal Enfield continues to evaluate opportunities for future expansion projects across strategic markets. The company currently operates four manufacturing facilities in Tamil Nadu, alongside seven CKD facilities spread across Bangladesh, Nepal, Brazil, Thailand, Argentina, and Colombia, including two facilities in Brazil.

Royal Enfield’s global retail footprint now extends to more than 3,200 stores across India and over 80 international markets. The company also operates two world-class technical centres located in Bruntingthorpe in the United Kingdom and Chennai in India.

Further underlining its sustained momentum, Royal Enfield recorded its second consecutive year of delivering more than one million motorcycles in FY’26, surpassing 1.2 million units. The company also ranked highest in two-wheeler initial quality in the 2025 J.D. Power India study and secured the top position in the FADA Dealer Satisfaction Survey.

Strengthening its standing as a globally recognised Indian automotive marque, Royal Enfield was also ranked third among the World’s Strongest Automobile Brands in the Brand Finance Automotive Industry 2026 report.


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