Royal Enfield to Expand Production Capacity in India to 20 lakh Units Annually

In a regulatory filing, Eicher Motors disclosed that its board has cleared a proposal to expand manufacturing capacity for Royal Enfield. The company plans to undertake a brownfield expansion at its Cheyyar facility in Tamil Nadu. The estimated investment for the project is Rs 958 crore and will be funded through internal accruals.

At present, installed capacity across plants is about 14.6 lakh motorcycles per year and utilisation is close to full, according to the company’s disclosure. After the proposed addition, total capacity is expected to increase to up to 20 lakh units annually. The ramp-up will begin in the first quarter of FY2026-27 and is targeted to be completed during FY2027-28. The company said the expansion is intended to cater to increasing demand.

Royal Enfield reported sales of 3,25,773 motorcycles in Q3 FY 2025-26 reflecting a Year-on-Year (Y-o-Y) growth of 21 percent when compared to 2,69,039 units sold in Q3 FY 2024-25.

For January 2026, total sales, including domestic and exports, stood at 1,04,322 units reflecting a Y-o-Y growth of 14 percent when compared to 91,132 units sold in January 2025. The company said it also crossed one million cumulative sales in 10 months, its fastest pace so far.

Domestic volumes in January 2026 reached 93,781 units reflecting a Y-o-Y growth of 16 percent when compared to 81,052 units sold domestically in January 2025. Exports reached 10,541 units in January 2026 reflecting a Y-o-Y growth of 5 percent when compared to 10,080 shipped in January 2025.

Motorcycles up to 350cc engine capacity accounted for 92,998 units reflecting a Y-o-Y growth of 18 percent when compared to 78,815 units sold in January 2025. Models above 350cc engine capacity recorded 11,324 units reflecting a Y-o-Y growth of 8 percent when compared to 12,317 units sold in January 2025.