Royal Enfield maker Eicher Motors gets nod for ₹2,500 crore bike plant in Andhra as capacity nears full use

Eicher Motors said on Monday, May 18, that the Government of Andhra Pradesh has approved a 215.7-acre land parcel at Tada for the company’s proposed greenfield manufacturing expansion, with an estimated investment of up to ₹2,500 crore.

The company said the investment, which will be funded through internal accruals, is aimed at supporting its long-term growth plans.

The final plan for the proposed capacity addition will be considered and approved by the company’s board in forthcoming meetings.

Eicher Motors said its existing motorcycle manufacturing capacity stands at around 14.6 lakh units per year and is currently close to full utilisation.

Previously announced brownfield expansion projects across its Tamil Nadu plants are expected to increase total annual capacity to up to 20 lakh motorcycle units by the end of FY28.

Earlier, in its Q3FY26, the company had delivered a solid performance in the, reporting results that exceeded CNBC-TV18 estimates across key parameters, aided by strong volume growth and operating leverage.

The company’s consolidated revenue rose 23% year-on-year to ₹6,114 crore, higher than the CNBC-TV18 poll estimate of ₹6,050 crore.

Ahead of the announcement shares of Eicher Motors closed 1.71% lower at ₹6,894.50 on the NSE on Monday.

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