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 come up in Tada, near Tirupati, with the company planning an investment of around Rs 2,500 crore.The project will be implemented in phases and remains subject to approval from the company’s board. Royal Enfield said the expansion plans will be aligned with future market demand and business conditions.Currently, the motorcycle maker has an annual production capacity of around 14.6 lakh units, which is nearing full utilisation. 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 overall production capacity to 20 lakh units annually. Royal Enfield currently operates four manufacturing facilities in Tamil Nadu and also has seven CKD assembly plants globally across Bangladesh, Nepal, Brazil, Thailand, Argentina and Colombia. The brand sells motorcycles in more than 80 countries and operates through over 3,200 stores worldwide.The 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 of selling over one million units annually. 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.
