Eicher Motors announced on February 10th, 2026, that its Board of Directors has approved a capacity expansion plan for Royal Enfield motorcycles in India.

The expansion will increase the company's total production capacity from the current 1.46 million units per year to 2 million units per year across all plants. The company will invest Rs. 9.58 billion (US$ 105.8 million) in a brownfield expansion at its manufacturing facility in Cheyyar, Tamil Nadu.

The expansion will be funded through internal accruals, according to a regulatory filing submitted to the BSE and National Stock Exchange.

The capacity ramp-up will occur in phases, commencing in the first quarter of the financial year 2026-27 and reaching completion by FY 2027-28. Eicher Motors stated that the expansion is intended to meet increasing demand for its motorcycles.

The filing noted that the company's existing manufacturing capacity is operating at close to full utilisation. The additional 540,000 units of annual capacity represent an approximate 37% increase over current levels.

This expansion will be executed at the existing Cheyyar facility through brownfield development, which involves expanding operations at an operational manufacturing site. The decision to fund the expansion entirely through internal accruals indicates that the company will utilise its own reserves and profits rather than seeking external financing through debt or equity. This approach suggests a strong financial position with sufficient cash flows to support the capital expenditure.

Eicher Motors manufactures Royal Enfield motorcycles, a brand with heritage dating back to 1901. The company has been experiencing demand pressure as its current facilities operate near maximum capacity.

Royal Enfield has established itself as a manufacturer of mid-size motorcycles in India and has been expanding its presence in international markets.

The Cheyyar plant in Tamil Nadu is one of several manufacturing facilities operated by Eicher Motors for Royal Enfield production. The company's manufacturing network includes plants across different locations in India. The decision to expand at Cheyyar indicates that the site offers suitable infrastructure and logistical advantages for increased production.

Eicher Motors is headquartered in Gurugram, Haryana, with its registered office located in New Delhi.

The regulatory filing submitted to the stock exchanges was signed by the company secretary, Atul Sharma.