Royal Enfield plans to set up manufacturing plant in Andhra Pradesh; Eicher Motors shares trade lower

Eicher Motors’ shares were trading lower on Tuesday, May 19, as the Royal Enfield maker said it will secure a land parcel for a new greenfield manufacturing facility in Tada (Tirupati), Andhra Pradesh.

The company plans to invest approximately ₹2,500 crore for the greenfield expansion. “Subject to approval by the company’s board, the project will be implemented in a phased manner, calibrated to future demand and market conditions,” Eicher Motors said in a statement.

Currently, the company has a capacity of around 14.6 lakh motorcycles per year, which is close to full utilisation. In February 2026, Royal Enfield announced a ₹958 crore investment for capacity expansion in Cheyyar, Tamil Nadu, which will increase the total capacity to 20 lakh units.

Eicher Motors said that Royal Enfield continues to evaluate options for future projects as part of its long-term growth strategy. It added that the company currently operates four manufacturing facilities in Tamil Nadu and seven CKD facilities across Bangladesh, Nepal, Brazil, Thailand, Argentina and Colombia.

Commenting on the expansion plan, Eicher Motors Managing Director and Royal Enfield CEO B. Govindarajan said, “We currently operate four world-class manufacturing facilities in Tamil Nadu, with a total projected capacity of 2 million units annually. This investment in Andhra Pradesh will augment that capacity and provide the impetus for our next phase of growth. We are grateful to the Government of Andhra Pradesh for their support and partnership as we strengthen our presence in a state with immense potential.”

In FY26, Royal Enfield delivered its second consecutive year of over one million motorcycles, crossing 1.2 million units.

The mid-size motorcycle maker had reported a 31% rise in total sales at 113,164 units in April 2026 as compared to 86,559 units sold in the same month last year. Its domestic sales were at 104,129 units as against 76,002 units in April 2025, up 37%, Royal Enfield had said.

Eicher Motors share price

At 10:08 AM, shares of Eicher Motors were trading at ₹6,885 apiece on the National Stock Exchange, falling 0.41%. The stock had touched an intraday low of ₹6,872 per share in the early session on Tuesday.

In a month, shares of the firm have declined 5%, while for six months’ time, they have advanced a little over 1%. On a year-on-year basis, Eicher Motors shares have fallen 6%.

The company has a market capitalisation of ₹1.89 lakh crore.

Shares of the company had touched their one-year high of ₹8,230 apiece on February 27, 2026, while their 52-week low of ₹5,219.50 was hit on June 13, 2025.