Royal Enfield to invest ₹2,200 crore in Andhra Pradesh plant, adding 9 lakh units capacity
Royal Enfield will invest nearly ₹2,200 crore to set up a new manufacturing facility at Satyavedu in Tirupati district, Andhra Pradesh, marking the iconic motorcycle maker's first major manufacturing expansion outside Tamil Nadu since its founding in 1901. The project, approved at the Andhra Pradesh State Investment Promotion Board (SIPB) meeting on 7 May 2025, is expected to add nearly 9 lakh units to Royal Enfield's annual production capacity and generate around 5,000 direct and indirect jobs.
Project Details and Land Allocation
The Andhra Pradesh government has allocated 267 acres of land for the project across Vanelluru (233.76 acres) and Rallakuppam (42.38 acres) villages in Satyavedu mandal, close to the Andhra Pradesh–Tamil Nadu border. The investment will be deployed in two phases — the first phase, which will include a dedicated vendor park, is targeted for completion by 2029, while the second phase is expected to be completed by 2032. The facility will become Royal Enfield's second manufacturing destination in India.
SIPB Meeting and Broader Investment Push
The Royal Enfield project was among 25 projects approved at the SIPB meeting chaired by Chief Minister N. Chandrababu Naidu on 7 May 2025. The meeting cleared investments totalling more than ₹2 lakh crore across sectors. This comes amid Andhra Pradesh's sustained push to position itself as a preferred large-scale manufacturing destination, spanning mobility, electronics, renewable energy, and advanced manufacturing.
What Minister Lokesh Said
Andhra Pradesh Minister for Information Technology and Electronics, Nara Lokesh, described the investment as a strong endorsement of the state's business environment.
