Eicher Motors announced the board’s approval for a significant capacity expansion aimed at supporting the growing demand for Royal Enfield motorcycles. The plan involves a substantial brownfield expansion requiring an estimated investment of Rs. 958 Crore. The existing capacity of 14.6 Lakh units is nearing full utilization, and the new plan will see the total capacity increase to up to 20 Lakh units per year, with ramp-up phased between Q1 FY 2026-27 and FY 2027-28.
Board Approves Royal Enfield Expansion
Eicher Motors Limited confirmed on February 10, 2026, that its Board of Directors has sanctioned a proposal for a substantial capacity expansion specifically tailored for its Royal Enfield brand. This move is motivated by the need to cater to the increasing demand being experienced across all plants.
Current Capacity and Utilization
The company’s current production capacity stands at approximately 14.6 Lakh motorcycle units per year across its manufacturing facilities. The disclosure notes that this existing capacity is currently close to full utilisation, necessitating immediate action to sustain growth.
Expansion Details and Investment
The proposed expansion will significantly increase manufacturing capability. The details of the plan are as follows:
- Proposed Capacity Addition: The total capacity, combining existing and new output, will reach up-to 20 Lakh motorcycle units per year across all plants.
- Investment Required: The estimated investment for this project is set at Rs. 958 Crore.
- Location: The expansion will be a brownfield expansion situated at the Company’s plant in Cheyyar, Tamil Nadu.
- Financing: The project will be funded through Internal Accruals.
Timeline for Ramp-Up
The increased production capability will be implemented in phases. The ramp-up is anticipated to commence from Q1 of Financial Year 2026-27 and is expected to be fully completed by the end of Financial Year 2027-28.
Source: BSE
