Royal Enfield to set up manufacturing facility in Andhra Pradesh

Royal Enfield has announced plans to establish a new manufacturing facility along with a vendor park in Andhra Pradesh. The Chennai-based manufacturer has operated exclusively out of Tamil Nadu since starting production there in 1955, making this a significant shift in its manufacturing operations.

1. Rs 2,200 crore investment for new facility in Andhra Pradesh
2. New plant to add 9 lakh units to annual production capacity
3. Expected to create 5,000 direct and indirect jobs

Royal Enfield Andhra Pradesh plant details

This will be the brand’s first plant in India outside Tamil Nadu

The facility will span 276 acres across Vanelluru and Rallakuppam villages in the Satyavedu area of Tirupati district. The project has received approval from the Andhra Pradesh State Investment Promotion Board.

Development will take place in two phases. The first phase will include a vendor park, targeted for completion by 2029, while full operational capacity is expected by 2032. Once complete, the new plant will increase Royal Enfield’s annual production capacity by 9 lakh units, adding to its current capacity of around 15 lakh motorcycles.

The company estimates that the project will generate around 5,000 jobs, both directly within the facility and indirectly through supporting operations. The information was confirmed to The Economic Times by Andhra Pradesh’s IT and Electronics Minister, Nara Lokesh, who stated that the investment supports the state’s automotive manufacturing development goals.