The Board of Eicher Motors Ltd, the parent company of Royal Enfield, has approved an investment of Rs 958 crores for this capacity expansion
Royal Enfield has increased the annual production capacity at the Cheyyar manufacturing facility in Tamil Nadu, India. This factory will now wheel out 20 lakh units each year from the existing 14.6 lakh units. The company has invested around Rs 958 crores for this brownfield expansion at the Chennai facility, which has been approved by the board of Eicher Motors Ltd, the parent company of Royal Enfield. This capacity expansion will facilitate smooth production of upcoming models such as Bullet 650, Flying Flea C6 and S6.
Speaking about the capacity expansion, B. Govindarajan, Managing Director – Eicher Motors Ltd., and Chief Executive Officer – Royal Enfield said, “This investment will augment our annual production capacity and allow us to meet the expanding existing and projected future demand. By scaling our existing Cheyyar plant, we are ensuring a faster capacity ramp-up and cost-efficient operations. This project is aligned with our consistent growth focus and underscores our commitment to the evolving needs of our global community.”
Royal Enfield also announced that it has registered sales of 325,773 units in Q3 of FY 2025-26 with a YoY growth of 21 percent. The brand stated that last quarter between Oct-Dec 2025 was its best ever third quarter performance. The Chennai-based two-wheeler brand had sold 269,039 motorcycles during Q3 of FY 2024-25.
Eicher Motors Ltd reported revenue from operations at Rs 6,114 crores in Q3 FY 2025-26 with a growth of 23 percent from the corresponding quarter of FY 2024-25. The EBITDA grew 30 percent to its highest-ever at Rs 1,557 crores and Profit After Tax rose 21 percent to Rs 1,421 crores from Rs 1,171 crores last year.
Speaking on Royal Enfield’s performance, he added, “This quarter continues the steady momentum that we have built over the previous six quarters and disciplined execution across Eicher Motors, with encouraging performance from Royal Enfield. At Royal Enfield, we continued to see healthy demand across markets, alongside consistent progress in strengthening our product pipeline, capacity building, and engagement with the riding community. The quarter was also significant from a brand and strategy perspective, as we kickstarted celebrations for our historic 125-year milestone at EICMA 2025.”
Royal Enfield unveiled a total of five new models at the EICMA 2025 in Italy, which were later showcased at the Motoverse 2025 in India. These included Bullet 650, Classic 650 125th Anniversary Special Edition, Himalayan Mana Black Edition, Meteor 350 Sundowner Orange Edition, and Flying Flea S6.
