INDIA —Eicher Motors has approved an investment of INR 12.25 billion for the first phase of Royal Enfield's greenfield manufacturing facility in Andhra Pradesh, advancing the motorcycle maker's long-term production expansion strategy. According to the company's regulatory disclosure, the first phase forms part of a previously announced total investment plan of around INR 25 billion for the project and will be funded entirely through internal accruals.
The first phase is scheduled for completion by FY2030 and will provide an annual manufacturing capacity of 450,000 motorcycles at full utilization. The additional capacity is intended to support sustained growth in domestic demand while strengthening Royal Enfield's ability to serve expanding international markets.
The investment comes as Royal Enfield continues to scale its manufacturing network. The company currently operates production facilities in Tamil Nadu and is also expanding its Cheyyar plant through a brownfield project. Once the Andhra Pradesh facility's first phase becomes operational, Royal Enfield's total annual production capacity is expected to increase to approximately 2.45 million motorcycles.
The capacity expansion reflects growing confidence in the global mid-size motorcycle segment, where Royal Enfield has broadened its product portfolio and expanded its presence across Europe, Latin America and the Asia-Pacific region. Higher manufacturing capacity is expected to improve supply flexibility, support new product launches and strengthen export capabilities while helping the company respond to rising customer demand.
Eicher Motors is one of India's leading automotive companies and the parent of Royal Enfield, a manufacturer specializing in mid-size motorcycles. The company continues to invest in manufacturing capacity, product development and international expansion to strengthen its position in global premium motorcycle markets.
