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Eicher Motors is set to invest nearly ₹2,200 crore in FY2027 to expand its premium motorcycle brand Royal Enfield and strengthen its electric vehicle (EV) business. The company’s Managing Director B. Govindarajan stated that around ₹1,000 crore of the planned investment will be allocated towards expanding manufacturing capacity, while the remaining amount will support new product development and EV programmes.
The company has witnessed strong growth in the premium motorcycle segment over the past few years. In FY2026, Royal Enfield sold more than 1.227 million motorcycles, marking the second consecutive year in which the brand crossed the one-million sales milestone. Domestic sales increased by 23 percent, while exports registered a 20 percent growth during the year.
As part of its expansion strategy, the company has approved a 958 crore brownfield expansion at its Cheyyar facility in Tamil Nadu. The project is expected to increase annual production capacity from 1.46 million units to nearly 2 million units by FY2028. In addition, the company has signed an agreement with the Andhra Pradesh government to establish a new greenfield manufacturing facility near Tirupati, with planned investments of around ₹2,500 crore over multiple phases.
According to the company management, demand trends remain strong despite geopolitical uncertainties and supply chain disruptions globally. In April 2026, the company sold around 1.13 lakh motorcycles, recording a 31 percent increase compared to the same period last year. The company also noted that dealer inventory currently stands at only seven to eight days, indicating strong market demand and tight supply conditions.
