The project at full utilisation can produce an additional 4.5 lakh motorcycles per year. The capacity addition is expected to be completed during FY 2029-30, subject to market conditions, the company said in a statement.
Royal Enfield existing capacity is around 15 Lakh motorcycles per year at Oragadam and Vallam Vadagal (Tamil Nadu), as of 29 July 2026.
The capacity of around 15 Lakh motorcycle units per year is approaching full utilisation, the company said.
In addition, Royal Enfield brownfield capacity expansion plan at Cheyyar plant (Tamil Nadu), is in progress and is expected to be completed by FY 2027-28, post which, the combined capacity at the three plants will reach up-to 20 Lakh motorcycles per year.
With Phase 1 of the Greenfield expansion in Andhra Pradesh, the total production capacity for Royal Enfield across all plants will reach around 24.5 lakhs motorcycles per year. The company plans to fund the expansion through internal accruals.
Royal Enfield recorded its highest-ever quarterly sales of 332,940 motorcycles in the first quarter of FY2027, up 27 per cent from 261,326 motorcycles in the corresponding quarter.