Royal Enfield to invest ₹2,200 crore in Andhra Pradesh; sets up first manufacturing plant outside Tamil Nadu

Motorcycle manufacturer Royal Enfield has chosen Andhra Pradesh for its new manufacturing expansion project, the company’s first major expansion outside Tamil Nadu since its inception in 1901.

The company will invest around Rs 2,200 crore in two phases to set up a manufacturing facility at Satyavedu in Tirupati district near the Andhra Pradesh-Tamil Nadu border. The project is expected to add around nine lakh units to Royal Enfield’s production capacity and further strengthen India’s position as the global premium motorcycle manufacturing hub, the state government said in a statement late on Wednesday (May 6, 2026).

Andhra Pradesh State Investment Promotion Board (SIPB), chaired by Chief Minister N. Chandrababu Naidu, approved the project in its meeting held this week.

The state government has allocated 267 acres of land for the project in Vanelluru (233.76 acres) and Rallakuppam (42.38 acres) villages in Satyavedu mandal. The facility will be Royal Enfield’s second manufacturing location in India and is expected to create around 5,000 direct and indirect jobs.

Apart from the main manufacturing unit, the project will also include a dedicated vendor park in the initial phase, which will help bring the company’s supplier ecosystem to Andhra Pradesh and develop an automotive manufacturing cluster in the state. The first phase is aimed to be completed in 2029 and the second phase in 2032.

Speaking about the development, Nara Lokesh, Minister for Education, IT and Electronics and Human Resource Development, said: “Royal Enfield is much more than a motorcycle brand. It is a timeless symbol of heritage, craftsmanship and enduring quality. We are proud to welcome this iconic company to Andhra Pradesh. This investment is a strong endorsement of Andhra Pradesh’s pace of business, robust infrastructure ecosystem and our determination to become a leading manufacturing destination in India. Beyond the facility itself, the vendor ecosystem and ancillary industries that will emerge around this project “The industries will significantly strengthen our vision of establishing a globally competitive automobile and advanced manufacturing hub.”