Royal Enfield has announced plans to set up a new greenfield manufacturing facility in Andhra Pradesh as the company looks to increase production capacity amid rising demand. The new plant is proposed to be set up at Tada near Tirupati, the company is planning to invest around Rs 2,500 crore.The plan will be implemented in phases and is subject to the approval of the company’s board. Royal Enfield said the expansion plans will be in line with future market demand and business conditions.Currently, the motorcycle manufacturer has an annual production capacity of around 14.6 lakh units, which is close to full utilization. Earlier this year, in February 2026, the company had also announced an investment of Rs 958 crore to expand capacity at its Chiyar facility in Tamil Nadu. The expansion is expected to take Royal Enfield’s total production capacity to 2 million units per annum. Royal Enfield currently operates four manufacturing facilities in Tamil Nadu and also has seven CKD assembly plants globally in Bangladesh, Nepal, Brazil, Thailand, Argentina and Colombia. The brand sells motorcycles in more than 80 countries and operates through more than 3,200 stores worldwide.The expansion comes at a time when Royal Enfield continues to have strong global demand. In FY26, the company crossed the 1.2 million motorcycle sales mark for the second consecutive year, selling 1 million units annually. The company also ranked high in the initial quality of two-wheelers in the 2025 JD Power India study and topped the FADA dealer satisfaction survey.
