GaadiWaadi –
Royal Enfield’s parent firm Eicher Motors has approved a large scale capacity increase programme that will take annual output capability close to 20 lakh units by FY28
Nearly two lakh additional motorcycles every quarter could soon roll out from Royal Enfield production lines as the company prepares its biggest manufacturing expansion yet. Parent firm Eicher Motors has now approved a large scale capacity increase programme that will take annual output capability close to 20 lakh units by FY28. At present, Royal Enfield’s total installed capacity stands at around 14.6 lakh motorcycles yearly.
Increasing demand across domestic and export markets has pushed utilisation levels close to maximum at existing factories and the company is now preparing new investments to support future growth. The expansion will add an estimated 5.4 lakh units annually – indicating close to a 37 per cent increase over current levels. A major portion of this scale up will happen at the Cheyyar facility in Tamil Nadu.
Eicher Motors has sanctioned an investment of Rs. 958 crore for brownfield expansion activities there. The rollout is expected to begin during FY27 and gradually ramp up over the following financial year. Unlike several other large automotive investments, the project will reportedly be funded entirely through internal accruals showing the company’s strong financial positioning attained over the years.
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Alongside the Tamil Nadu expansion, Royal Enfield is also preparing a completely new manufacturing facility in Andhra Pradesh near Tirupati. Reports indicate the proposed greenfield project could involve investment of roughly Rs. 2,500 crore and may eventually become closely linked with future electric motorcycle production plans. Coincidentally, the expansion plans are closely tied to RE’s recent sales surge.
The brand crossed one million annual motorcycle sales earlier before climbing further during FY26 with total dispatches reportedly going over 12 lakh units globally. The local volumes remain heavily supported by the 350 cc portfolio led by Classic 350, Hunter 350 and Bullet 350 while 450 cc and 650 cc motorcycles have helped the company reach across younger and touring-based consumers.
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Monthly dispatches crossing one lakh units have now become increasingly common for Royal Enfield and exports are also gaining pace across regions such as Latin America, Europe and Southeast Asia. Export volumes reportedly crossed 1.3 lakh motorcycles during FY26 as the company expanded assembly operations and retail presence in overseas markets. Future product activity is expected to intensify further over the next two years.
Royal Enfield is currently preparing multiple motorcycles across IC-engined and electric platforms. The lineup of upcoming launches will include the Flying Flea S6 electric scrambler, Bullet 650, Himalayan 750 and a scrambler based on the 450 cc platform. Updated versions of existing motorcycles are also under development. A revised Continental GT 650 featuring hardware changes, more accessible Himalayan 440 positioned, etc are likely.
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