Royal Enfield, the motorcycle manufacturer, has chosen Andhra Pradesh for its new manufacturing expansion project, the company’s first major expansion outside Tamil Nadu since its inception in 1901.

The company will invest about ₹2,200 crore in two phases to set up a manufacturing facility at Satyavedu in Tirupati district, close to the Andhra Pradesh-Tamil Nadu border. The project is expected to add nearly nine lakh units to Royal Enfield’s manufacturing capacity, and further strengthen India’s position as a global premium motorcycle manufacturing hub, state government said in a release late on Wednesday (May 6, 2026).

The Andhra Pradesh State Investment Promotion Board (SIPB), chaired by Chief Minister N. Chandrababu Naidu, approved the project at its meeting held this week.

The State government has allocated 267 acres of land for the project across Vanelluru (233.76 acres) and Rallakuppam (42.38 acres) villages in Satyavedu mandal. The facility will be Royal Enfield’s second manufacturing destination in India, and is expected to generate around 5,000 direct and indirect jobs.

Apart from the core manufacturing unit, the project will also include a dedicated vendor park in the first phase, helping bring the company’s supplier ecosystem to Andhra Pradesh and helping develop an automotive manufacturing cluster in the State. The first phase is targeted for completion by 2029, and the second phase by 2032.

Speaking on the development, Nara Lokesh, Minister for Education, IT and Electronics, and Human Resources Development, said: “Royal Enfield is far more than a motorcycle brand. It is a timeless symbol of heritage, craftsmanship and enduring quality. We are proud to welcome this iconic company to Andhra Pradesh. This investment is a strong endorsement of Andhra Pradesh’s speed of doing business, robust infrastructure ecosystem, and our commitment to becoming a leading manufacturing destination in India. Beyond the plant itself, the vendor ecosystem and ancillary industries that will emerge around this project will significantly strengthen our vision of building a globally competitive automobile and advanced manufacturing hub.”