Eicher Motors Ltd, the maker of Royal Enfield motorcycles, plans to ramp up production capacity at its Cheyyar plant in Tamil Nadu by 5 lakh units per annum, involving an investment of ₹958 crore, to meet rising domestic and export demand.
In a regulatory filing, the company said it currently has an installed capacity of about 14.6 lakh motorcycle units per annum across all its manufacturing facilities, which is nearing full utilisation. With the proposed expansion, Eicher Motors’ total capacity will rise to around 20 lakh units per year.
The capacity addition at Cheyyar will be implemented in a phased manner beginning Q1 FY27 and is expected to be fully completed by FY28. The company said the investment will be funded entirely through internal accruals.
The expansion underscores Royal Enfield’s sustained demand momentum across key domestic markets as well as exports, particularly for mid-sized motorcycles. Cheyyar is a strategic manufacturing hub for the company, catering to both domestic and international markets.
The additional capacity is also expected to support future product launches and improve supply-chain efficiencies as the company scales up operations.