B Govindarajan, Managing Director - Eicher Motors Ltd., and Chief Executive Officer - Royal Enfield
| Photo Credit:
The board of Eicher Motors Ltd (EML) on Wednesday approved an investment of ₹1,225 crore for Phase I of the greenfield expansion in Andhra Pradesh. The plant at full utilisation can produce an additional 4.5 lakh motorcycles per year.The above capacity addition is expected to be completed during FY 2029-30, subject to market conditions, says a release.B Govindarajan, Managing Director - Eicher Motors Ltd., and Chief Executive Officer - Royal Enfield, in a press release said, “to support our growth over the long-term, we announced plans for a new greenfield manufacturing facility in Tada, Andhra Pradesh, to expand our capacity beyond the existing facilities in Tamil Nadu.”Growth strategyAs part of its long-term growth strategy, Royal Enfield announced plans to acquire a land parcel in Tada, Andhra Pradesh, for a new greenfield manufacturing facility. With a planned investment of approximately ₹2,500 crore implemented in a phased manner, the project will strengthen the company’s manufacturing capacity to meet future market demand, says the release.The company’s total existing capacity is around 15 Lakh motorcycles per year at Oragadam and Vallam Vadagal in Tamil Nadu (as of July 29, 2026). In addition, the company previously announced a brownfield capacity expansion plan at Cheyyar plant in Tamil Nadu. The brownfield expansion is in progress and is expected to be completed by FY 2027-28, post which, the combined capacity at the three plants will reach up-to 20 Lakh motorcycles per year, the release said.The company meanwhile reported a 21 per cent increase in consolidated net profit to ₹1,463 crore for the quarter ended June 30, 2026 as against ₹1,205 crore last year. Total revenue rose by 32 per cent to ₹6,632 crore from the corresponding quarter of previous year, says the release.Royal Enfield recorded its highest-ever quarterly sales of 3,32,940 motorcycles, up 27 per cent from 2,61,326 motorcycles in the corresponding quarter, says a release.VE Commercial Vehicles (VECV) net profit increased to ₹300 crore (₹288 crore) on 17 per cent growth in revenue to ₹6,610 crore (₹5,671 crore). VECV recorded its highest-ever first quarter sales of 24,815 vehicles, up from 21,610 vehicles in the previous year, says a release.Govindarajan on the results said, “building on a record-setting performance in FY26, we have sustained our strong momentum into the new financial year, with Royal Enfield recording its highest-ever quarterly sales and VECV recording its highest-ever Q1 sales.”Speaking on VECV’s performance B. Srinivas. Managing Director and Chief Executive Officer – VECV, said, “We are pleased to have delivered our best-ever first quarter, with sales of 24,815 units, growing 14.8 per cent year-on-year, while maintaining our number one position in the LMD truck market. Beyond the numbers, we continued to drive modernization in the Indian CV sector.”“We also signed a MoU with the Ministry of Road Transport and Highways under the PARIVARTAN fleet modernization scheme for the NCR, signaling our partnership to support the transition towards a cleaner and more efficient commercial vehicle fleet. As we look ahead, we remain focused on building on this momentum and delivering sustained value for our customers in a rapidly evolving industry,” he said.Published on July 29, 2026
