Royal Enfield to expand annual capacity to 20 lakh units
Eicher Motors has approved a significant capacity expansion plan for its motorcycle arm, Royal Enfield, with an investment of Rs. 958 crore aimed at increasing annual production capacity from 14.6 lakh units to 20 lakh units. The decision comes as the company’s existing facilities are operating at near-full utilisation levels.
The expansion will be carried out at Royal Enfield’s manufacturing plant in Cheyyar, Tamil Nadu. Once completed, the additional capacity of 5.4 lakh units per year will represent a 37 percent increase over current output levels. The ramp-up will be implemented in phases, beginning in the first quarter of FY2027, with full completion targeted by FY2028.
According to regulatory filings submitted to the BSE and NSE, the entire investment will be funded through internal accruals, indicating that the company will rely on its own reserves rather than external borrowing. The move reflects confidence in sustained demand for Royal Enfield motorcycles across domestic and overseas markets.
In 2025, Royal Enfield recorded its highest-ever annual sales, crossing the one-million mark for the first time with 10,71,809 units sold globally. Exports accounted for 1,32,132 motorcycles during the year. The planned capacity expansion is expected to support future growth and help the brand meet rising demand in the coming years.
