Eicher Motors Limited has informed the Exchange regarding a press release dated May 18, 2026, titled "ROYAL ENFIELD PLANS A STRATEGIC MANUFACTURING EXPANSION TO ACQUIRE A LAND PARCEL IN ANDHRA PRADESH FOR A GREENFIELD FACILITY".
EICHERMOT · price
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Royal Enfield, the mid-size motorcycle segment leader under Eicher Motors, announced plans to acquire land in Tada (Tirupati), Andhra Pradesh for a new greenfield manufacturing facility. The proposed investment is approximately ₹2,500 crores, subject to board approval, to be implemented in phases based on future demand. The company's current annual capacity of 14.6 lakh units is nearly fully utilized. A separate ₹958 crore expansion at Cheyyar, Tamil Nadu announced in February 2026 will raise total capacity to 20 lakh units. Royal Enfield currently operates four manufacturing facilities in Tamil Nadu and delivered over 1.2 million motorcycles in FY26, its second consecutive year above 1 million units.
This expansion signals Royal Enfield's commitment to significantly scale up production capacity to meet growing global demand. The ₹2,500 crore investment represents a substantial capital commitment that could drive long-term growth but may pressure near-term free cash flow until the facilities become operational.