Eicher Greenlights Capacity Push to Lift Royal Enfield Output 

What happened: Eicher Motors has approved a large capacity expansion that would take Royal Enfield’s annual output close to 20 lakh units in 2 yrs. Current installed capacity stands at about 14.6 lakh motorcycles per year.

Why it matters: Rising demand in domestic and export markets has pushed existing plants near full utilization. Much of the scale-up will occur at the Cheyyar facility in TN. It is also preparing a new greenfield plant in AP- a project reported at around Rs. 2,500 crore that may later connect to electric motorcycle production.

Industry context: The expansion follows a sales surge –which crossed one million annual sales and 12 lakh units globally in FY26. Domestic volumes lean on the 350 cc range, led by the Classic 350, Hunter 350, and Bullet 350, while 450 cc and 650 cc models reach younger and touring buyers.