Royal Enfield To Set Up New Two-Wheeler Manufacturing Facility In Andhra Pradesh At A Cost Of Rs 2,200 Crore

Royal Enfield is set to expand its manufacturing footprint with a new production facility in Andhra Pradesh, with investment capped at Rs 2,200 crore. The upcoming plant will be the company’s first major manufacturing expansion outside Tamil Nadu since its inception.

The proposal received clearance during a meeting of the State Investment Promotion Board (SIPB) chaired by Andhra Pradesh Chief Minister N. Chandrababu Naidu. The meeting also involved senior state officials, including Andhra Pradesh IT and HRD Minister Nara Lokesh.

Following the development, Lokesh shared a video on social media showing him on a Royal Enfield motorcycle, hinting at the brand’s arrival in the state with the caption “Guess who’s coming to AP?”

According to reports, the Andhra Pradesh government has allotted a total of 267 acres of land for the project in Vanelluru and Rallakuppam villages located in the Satyavedu region. Of this, around 233.76 acres have been allocated in Vanelluru, while 42.38 acres are situated in Rallakuppam. The facility will be developed in two phases. The first phase is expected to be completed by 2029, while the second phase is scheduled for 2032.

Beyond the main production plant, Royal Enfield will also establish a dedicated vendor park as part of the initial phase. This is expected to help bring key suppliers closer to the manufacturing hub. Once fully operational, the new facility is expected to add nearly 9 lakh units to Royal Enfield’s existing annual production capacity. The project is also expected to create close to 5,000 direct and indirect employment opportunities.

Royal Enfield’s current annual production capacity stands at 14.6 lakh units, spread across its manufacturing facilities at Oragadam, Vallam Vadagal and Thiruvottiyur near Chennai.