Royal Enfield to Invest ₹1,225 Crore in Phase 1 of Greenfield Andhra Pradesh Motorcycle Plant
Royal Enfield will invest ₹1,225 crore in the first phase of its upcoming greenfield manufacturing facility in Andhra Pradesh, as the premium motorcycle maker builds capacity for its next phase of growth. The board of parent company Eicher Motors has approved the investment for Phase I of the project.
At full utilisation, Phase I will be capable of producing an additional 4.5 lakh motorcycles annually. The capacity addition is expected to be completed during FY 2029-30, subject to market conditions, the company said.
The approval marks the next step in Royal Enfield's plan to establish a manufacturing base in Andhra Pradesh, its first production facility outside Tamil Nadu. The company had earlier announced a total planned investment of ₹2,500 crore for the greenfield project, to be developed in phases to meet rising domestic and export demand.
The Andhra Pradesh investment was first announced in May, when Royal Enfield said it would acquire land near Tirupati for the phased manufacturing facility. The project forms part of the company's broader capacity expansion programme, alongside an earlier announced expansion at its existing Cheyyar plant in Tamil Nadu.
Once fully developed, the Andhra Pradesh facility is expected to expand Royal Enfield's manufacturing footprint and support future volume growth in the mid-sized motorcycle segment.