Royal Enfield INR 2,200 cr manufacturing push in Andhra Pradesh

In a major boost to Andhra Pradesh’s industrial and manufacturing ambitions, iconic motorcycle manufacturer Royal Enfield has chosen Andhra Pradesh for its new manufacturing expansion project, marking the company’s first major expansion outside Tamil Nadu since its inception in 1901.

The company will invest approximately Rs 2,200 crore in two phases to establish a state-of-the-art manufacturing facility at Satyavedu in Tirupati district, close to the Andhra Pradesh–Tamil Nadu border. The project is expected to add nearly 9 lakh units to Royal Enfield’s manufacturing capacity and further strengthen India’s position as a global premium motorcycle manufacturing hub.

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

The Government of Andhra Pradesh has allocated 267 acres of land for the project across Vanelluru (233.76 acres) and Rallakuppam (42.38 acres) villages in Satyavedu mandal. The facility will become Royal Enfield’s second manufacturing destination in India and is expected to generate around 5,000 direct and indirect employment opportunities.

Apart from the core manufacturing unit, the project will also include a dedicated vendor park in the first phase, helping bring the company’s supplier ecosystem to Andhra Pradesh and accelerating the development of a world-class automotive manufacturing cluster in the state. The first phase is targeted for completion by 2029, while the second phase is expected to be completed by 2032.

Nara Lokesh, Minister for Education, IT & Electronics, and Human Resources Development, Government of Andhra Pradesh, said, “Royal Enfield is far 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 speed of doing business, robust infrastructure ecosystem, and our commitment to becoming a leading manufacturing destination in India. Beyond the plant itself, the vendor ecosystem and ancillary industries that will emerge around this project will significantly strengthen our vision of building a globally competitive automobile and advanced manufacturing hub.”

The project is expected to further accelerate industrial development in the southern region of Andhra Pradesh and reinforce the state’s growing reputation as a preferred destination for large-scale manufacturing investments across sectors including mobility, electronics, renewable energy and advanced manufacturing.