Eicher Motors-owned Royal Enfield on May 18th, stated that it plans to invest about Rs. 2.5 billion (US$ 25.95 million) in a new greenfield manufacturing facility in Tirupati, Andhra Pradesh, as the premium motorcycle manufacturer seeks to add production capacity amid sustained domestic and export demand.

In a stock exchange filing, the company stated that it is set to secure a land parcel in Tada, near Tirupati, for the proposed facility, which will be developed in phases, subject to board approval and future market conditions. However, the company did not disclose the size of the land parcel.

Royal Enfield currently has an annual manufacturing capacity of around 1.46 million motorcycles, which is operating close to full utilisation. Earlier this year, the company announced a separate Rs. 958 million investment for capacity expansion at its Cheyyar plant in Tamil Nadu, increasing its total installed production capacity to around 2 million units annually.

The Andhra Pradesh project marks Royal Enfield's next major manufacturing expansion as the company strengthens its presence in the global mid-sized motorcycle segment.

"This investment in Andhra Pradesh will augment that capacity and provide the impetus for our next phase of growth," said B. Govindarajan in the exchange filing.

Royal Enfield crossed 1.2 million motorcycle sales in FY26, marking its second consecutive year of sales exceeding one million units.

The company currently operates four manufacturing facilities in Tamil Nadu and has CKD assembly operations in Bangladesh, Nepal, Brazil, Thailand, Argentina and Colombia.