Desk: Indian two-wheeler manufacturer Royal Enfield is now going to enter a new phase of its expansion. In view of the continuously increasing demand in the market, the company has decided to increase its annual production capacity from 14.6 lakh units to 20 lakh units. About Rs 958 crore will be spent on this scheme. The special thing is that the company will make this entire investment from its internal resources, that is, no external loan or financing will be taken for this.
The popularity of Royal Enfield has increased rapidly in the last few years. The year 2025 was historic for the company, when it recorded sales of 10,71,809 bikes. This was the first time when the company’s annual sales crossed 10 lakh units. Along with the domestic market, the brand’s grip has strengthened in the international market as well. During the same period, 1,32,132 motorcycles were exported, which shows its global acceptance.
The existing production capacity is almost completely utilized. In such a situation, capacity expansion became necessary to maintain the balance between demand and supply. This expansion will be done at the plant located in Cheyyar, Tamil Nadu, where additional capacity of 5.4 lakh units will be added. That means total production will increase by about 37 percent. The project is expected to be commissioned in the first quarter of FY 2027, while the entire expansion will be completed by FY 2028.
The company will get many strategic benefits from this decision. The increasing demand will be met on time and the waiting period for customers is likely to be reduced. Besides, the launch of new models and expansion plans in the international market will also get strengthened. Royal Enfield, which already has a strong position in the mid-size motorcycle segment, is now ready to adopt a more aggressive strategy. Overall, this investment of ₹ 958 crore is not just a plan to increase production, but is being considered an important step towards the company’s long-term growth and global expansion.
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