B Govindarajan, Managing Director of Eicher Motors and Chief Executive Officer of Royal Enfield | Photo Credit: RAGU R

Production and dispatches at the Royal Enfield Cheyyar manufacturing facility in Tamil Nadu are returning to normal after labour shortages, Assembly elections and supply constraints impacted operations temporarily earlier this month, the automotive brand has said.

Speaking during the company’s earnings call, B Govindarajan, Managing Director of Eicher Motors and Chief Executive Officer of Royal Enfield, said the disruptions were short-term in nature and did not reflect any slowdown in the underlying demand for premium motorcycles.

Production was affected for about a week to 10 days due to manpower shortages linked to elections, along with LPG shortages and commodity availability issues, Govindarajan said, adding that power disruptions and supplier-side constraints also affected operations temporarily.

“There is no structural correction taking place in demand. Demand is continuing, inquiries are very good and booking trends are very good,” he added. “In the last two-three days, I am seeing production numbers are back and supplier supply situation is also becoming slightly better,” Govindarajan noted.

The comments come as Royal Enfield prepares for its next phase of expansion at its Cheyyar plant. The company announced a ₹958-crore brownfield expansion at the Tamil Nadu plant, which will increase annual production capacity from around 14.6 lakh units to nearly 20 lakh units in phases by FY28.

Royal Enfield said current installed capacity is around 14 lakh units annually, which will rise to more than 16 lakh units by June-July with the addition of a new 500-units-per-day manufacturing module. The larger Cheyyar expansion will subsequently take overall capacity to around 20 lakh units.

According to Govindarajan, the premium motorcycle segment has expanded from roughly 70,000 units a month in FY23 to about 1.1 lakh units currently, with Royal Enfield accounting for nearly 90,000 units.

Royal Enfield sold 12.27 lakh motorcycles in FY26, while April sales rose 57 per cent year-on-year to more than 1.04 lakh units

Published on May 24, 2026