Iconic motorcycle maker Royal Enfield has announced an investment of ₹2,200 crore to set up a new manufacturing facility in Andhra Pradesh, marking its first major expansion outside Tamil Nadu since its inception in 1901.
The facility will be developed in Satyavedu mandal in Tirupati district, near the Andhra Pradesh-Tamil Nadu border, and will be executed in two phases. Once operational, the plant is expected to add up to 900,000 units of annual production capacity, reinforcing India’s position as a global motorcycle manufacturing hub.
The project has been approved by the state’s investment promotion board in a meeting chaired by Chief Minister N Chandrababu Naidu. The government has allocated 267 acres of land across Vanelluru and Rallakuppam villages for the development.
Beyond manufacturing, the first phase will include a dedicated vendor park, aimed at bringing Royal Enfield’s supplier ecosystem closer to the plant. This is expected to catalyse the development of a “world class” automotive cluster in the region, attracting ancillary industries and boosting local industrialisation.
The project is projected to generate around 5,000 direct and indirect jobs, contributing to employment and economic growth in southern Andhra Pradesh. The first phase is targeted for completion by 2029, while the second phase is expected to be completed by 2032.
State minister Nara Lokesh described the investment as a strong endorsement of Andhra Pradesh’s business environment and infrastructure readiness, highlighting its ambition to emerge as a leading manufacturing destination.
For Royal Enfield, the move represents a strategic step to diversify its manufacturing base, de-risk geographic concentration, and support long-term demand growth both in India and global markets.
The investment also aligns with broader trends of automotive companies expanding capacity and building integrated supply ecosystems, as states compete to attract large scale manufacturing projects across mobility, electronics, and clean energy sectors.
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