Eicher Motors gets green nod for Cheyyar expansion; Royal Enfield annual capacity to rise to 20 lakh units

Capacity expansion for Royal Enfield will be achieved through a brownfield expansion at the Cheyyar manufacturing facility in Tamil Nadu | Photo Credit: BIJOY GHOSH

Eicher Motors Ltd has secured the Environment Clearance (EC) for the ₹1,104 crore brownfield expansion of its Cheyyar manufacturing facility in Tamil Nadu where Royal Enfield bikes are produced.

While the company’s proposal submitted to the State government for EC states the investment as ₹1,104 crore, a company release showed the amount as ₹958 crore.

The proposed expansion is for construction of Industrial Buildings (factory building, vehicle assembly, machine shop, engine assembly, fabrication and surface finishing and plating).

Meanwhile, the company on Tuesday said that its board approved capacity expansion for Royal Enfield, which will be achieved through a brownfield expansion at the Cheyyar manufacturing facility in Tamil Nadu.

Through the expansion, the annual production capacity will be increased upto 20 lakh units from the existing 14.6 lakh units. The company is set to invest an estimated ₹958 crore for the brownfield expansion, the company said in a regulatory filing.

B Govindarajan, Managing Director, Eicher Motors Ltd., and Chief Executive Officer, Royal Enfield, said this investment will augment the annual production capacity and allow the company to meet the existing and projected future demand. By scaling up the existing Cheyyar plant, the company is ensuring a faster capacity ramp-up and cost-efficient operations.

In June 2025, businessline reported that Royal Enfield’s Cheyyar two-wheeler plant will be an all-women plant. In August 2024, the company had a soft launch of the plant and currently is engaged in plating and auto buffing of parts.

Published on February 12, 2026