Royal Enfield will increase its annual Royal Enfield Production Capacity from 14.6 lakh units to 20 lakh units, following board approval from parent company Eicher Motors. The expansion involves an investment of Rs 958 crore and will be implemented at the company’s manufacturing facility in Cheyyar, Tamil Nadu.
The decision was disclosed in a regulatory filing submitted to the Bombay Stock Exchange and the National Stock Exchange.
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Royal Enfield Production Capacity to rise by 37 percent
The planned expansion will add 5.4 lakh units to Royal Enfield’s annual production capacity, representing a 37 percent increase over current levels. The company stated that its existing capacity is operating at near-full utilisation, prompting the need for additional output to meet rising demand.
The ramp-up will be executed in phases. Work is scheduled to begin in the first quarter of FY2027, with the full expanded capacity expected to be operational by FY2028.
Investment funded internally
According to the regulatory filing, the entire Rs 958 crore investment will be financed through internal accruals. This means the company will rely on its reserves and profits rather than raising funds through external debt or equity.
The expansion will take place at the Cheyyar plant in Tamil Nadu, which is part of Royal Enfield’s broader manufacturing network in the state.
Strong sales momentum
The Royal Enfield Production Capacity increase follows a period of strong performance for the brand in both domestic and overseas markets. In 2025, Royal Enfield recorded its highest-ever annual sales, crossing the one-million mark for the first time in a calendar year with total sales of 10,71,809 motorcycles.
Exports also remained significant, with 1,32,132 motorcycles shipped to international markets during the year.
For Indian buyers, the additional Royal Enfield Production Capacity is expected to support faster deliveries and improved availability of popular models, especially amid sustained demand across segments. It may also help the company manage waiting periods more effectively once the expanded capacity becomes operational.
The expansion signals Royal Enfield’s intent to align manufacturing output with sustained sales growth, with phased implementation planned through FY2028.
Disclaimer: Information in this report is based on regulatory filings and official disclosures. Timelines and capacity figures may be subject to change depending on execution and market conditions.
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Raj Prajapati is a senior automobile content writer at How2Guidess.in with over 3 years of experience in auto news, vehicle launches, comparisons, and EV updates. With a background in Computer Science & Engineering, he focuses on research-based, clear, and reader-friendly automobile content.