Chennai-based Royal Enfield has proposed to build a new manufacturing facility in Andhra Pradesh as part of a major expansion drive, with an investment of around Rs 2,500 crore.

The motorcycle maker said the proposed greenfield plant will be located in Tada, in Andhra Pradesh's Tirupati district. The project, subject to approval by the company's board, will be rolled out in phases depending on future demand and market conditions.

It is set to secure a land parcel for the facility in the Tada industrial hub, although some reports said the company had already acquired it.

Royal Enfield, which is owned by Eicher Motors, currently has an annual production capacity of about 14.6 lakh motorcycles, which it said is nearing full utilisation.

In February 2026, the Chennai-based manufacturer announced a separate Rs 958 crore investment to expand capacity at its Cheyyar plant in Tamil Nadu, taking total annual production capacity to 20 lakh units.

B Govindarajan, managing director of Eicher Motors Ltd and CEO of Royal Enfield, said: 'Royal Enfield's philosophy has always been to stay connected with our community to deliver the best possible products and experiences. We currently operate four world-class manufacturing facilities in Tamil Nadu, with a total projected capacity of 2 million units annually.'

"This investment in Andhra Pradesh will augment that capacity and provide the impetus for our next phase of growth. We are grateful to the Government of Andhra Pradesh for their support and partnership as we strengthen our presence in a state with immense potential," he added.

Govindarajan also thanked the Andhra Pradesh government for its support, adding that Royal Enfield had already established more than 100 retail and service outlets in the state and created over 1,200 direct and indirect jobs.