Royal Enfield maker Eicher Motors will invest Rs 2,200 crore to establish a manufacturing facility and vendor park in Tirupati district of Andhra Pradesh. This will be the company’s first major expansion outside Tamil Nadu. This is as per a report on PTI.
The report indicates that the project has been approved by the State Investment Promotion Board of Andhra Pradesh. The state government has allocated land for the project across Vanelluru and Rallakuppam villages in Satyavedu mandal near the Andhra Pradesh-Tamil Nadu border.
Financial Express could not verify the news independently. We will update all details as soon as we hear from Eicher Motors or Andhra Pradesh government officials on the issue.
Eicher Motors to invest in manufacturing facility in AP
The automobile manufacturing ecosystem is expected to generate around 5,000 direct and indirect employment opportunities in the state.
“Royal Enfield’s decision to establish its manufacturing facility in Andhra Pradesh with an investment of Rs 2,200 reflects the state’s strong industrial ecosystem, robust infrastructure and investor-friendly policies,” said an official statement by the board.
New unit manufacturing capacity
The greenfield facility is expected to add nearly nine lakh units to Royal Enfield’s manufacturing capacity. Apart from the core manufacturing unit, the project will include a dedicated vendor park aimed at bringing the company’s supplier ecosystem to Andhra Pradesh and accelerating the development of an automobile manufacturing cluster.
The company said that the first phase of the project is targeted for completion by 2029, while the second phase is expected to be completed by 2032.
Meanwhile, Andhra Pradesh IT Minister Nara Lokesh said that the state government is focusing on attracting large-scale investments across mobility, electronics, renewable energy, and advanced manufacturing sectors through infrastructure support and policy-driven industrial growth.
Royal Enfield FY26 output
In FY26, Eicher Motors’ Royal Enfield reported a 31 percent YoY sales growth. The company sold a total of 1,13,164 motorcycles last fiscal. The company’s total sales in the previous fiscal year were at 86,559 motorcycles.
Royal Enfiled’s FY26 sales were primarily dominated by its 350cc models. These models formed about 88% of its total sales during the period.