Royal Enfield To Boost Annual Production Capacity To 20 Lakh Motorcycles

Royal Enfield’s parent company, Eicher Motors, has approved a major capacity expansion plan aimed at supporting the brand’s growing demand in India and overseas. The decision was cleared by the company’s board as part of its long-term strategy to strengthen manufacturing capabilities and improve supply.

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Currently, Royal Enfield’s combined production capacity stands at 14.6 lakh motorcycles per year, and the brand states that it is operating close to full utilisation. Under the new plan, this will be expanded to 20 lakh units annually. The capacity ramp-up is slated to begin in the first quarter of FY2026-27 and will be completed in phases by FY2027-28.

To support this expansion, the company will invest Rs 958 crore in a brownfield project at its Cheyyar facility in Tamil Nadu. The investment will be funded through internal accruals and is expected to enhance manufacturing efficiency.

Royal Enfield has been seeing strong demand for its motorcycles in both domestic and international markets. In 2025, the brand recorded its highest-ever sales of over 10.70 lakh units, becoming the first time it crossed the one-million mark in a calendar year.