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Eicher Motors Approves Rs 958 Crore Cheyyar Upgrade to Lift Royal Enfield Capacity to 20 Lakh

A cash-funded brownfield upgrade at Cheyyar begins ramp-up in Q1 FY2027 with completion targeted in FY2028.

Overview

  • The Cheyyar, Tamil Nadu project will raise installed capacity from 14.6 lakh to 20 lakh motorcycles per year.
  • The plan adds 5.4 lakh units of annual output, a 37 percent increase over current levels.
  • Eicher Motors will fund the Rs 958 crore investment from internal accruals, avoiding new debt or equity issuance.
  • Management points to near-full utilisation and strong demand, including 10,71,809 bikes sold in 2025 and 1,04,322 in January 2026.
  • The expansion is intended to shorten waiting periods, support new product launches, and strengthen Royal Enfield’s international presence.