Royal Enfield Set to Increase Production Capacity in India

• Planning to set up a new plant in Andhra Pradesh
• Investment of Rs. 2,500 crore announced
• Total annual production capacity to reach 20 lakh units

Royal Enfield is planning to set up a new greenfield manufacturing facility in Tada, near Tirupati in Andhra Pradesh. The company plans to invest around Rs. 2,500 crore in the project, subject to board approval.

The new facility will be developed in phases, based on future market demand and business conditions. Royal Enfield currently has an annual production capacity of around 14.6 lakh motorcycles, which is said to be nearing full utilisation. Earlier this year, the company also announced an investment of Rs. 958 crore for expanding its Cheyyar plant in Tamil Nadu. Once operational, the Cheyyar expansion is expected to take Royal Enfield’s total production capacity to 20 lakh units annually.

At present, Royal Enfield operates four manufacturing plants in Tamil Nadu along with seven CKD facilities across international markets, including Brazil, Thailand, Argentina, Nepal, Bangladesh, and Colombia.

Royal Enfield is gearing up to launch a bunch of new motorcycles in the near future, including the Himalayan 750, Continental GT 750, and Himalayan 450-based offerings. The new plant will facilitate the roll out of more products and accommodate the brand’s rapidly expanding portfolio.