Eicher Motors Limited has informed the Exchange about Capacity addition
EICHERMOT · price
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Eicher Motors announced a new greenfield capacity expansion at Tada, Andhra Pradesh, with the state government approving 215.7 acres of land. The company currently operates at ~14.6 lakh motorcycle units per year, close to full utilization, with a separate ongoing brownfield expansion targeting 20 lakh units annually by end of FY 2027-28. The proposed greenfield investment is up to Rs. 2,500 crore, to be financed through internal accruals. The Board will finalize the capacity addition plan in forthcoming meetings. This reflects management's confidence in long-term demand growth for Royal Enfield motorcycles.
Positive signal for long-term revenue growth prospects as Eicher prepares for higher production volumes. The greenfield project, if approved, will significantly expand manufacturing footprint beyond Tamil Nadu. However, Rs. 2,500 crore capex will be a sizeable cash outflow over coming years.