This disclosure, made under Regulation 30 of SEBI (LODR) Regulations, 2015, serves as a continuation of the company's previous filing dated May 18, 2026, regarding a proposed Greenfield expansion in Andhra Pradesh.
Board Approval and Investment Details
The Board of Directors of Eicher Motors Limited, at its meeting held on July 29, 2026, approved an investment of ₹1,225 Crores specifically for Phase I of the Greenfield expansion project in Andhra Pradesh.
Existing Capacity and Utilization
- Total existing production capacity stands at approximately 15 lakh motorcycles per year across the Oragadam and Vallam Vadagal plants in Tamil Nadu (as of July 29, 2026).
- A previously announced brownfield capacity expansion plan at the Cheyyar plant (Tamil Nadu) is currently in progress.
- The brownfield expansion is expected to be completed by FY 2027-28.
- Upon completion of the brownfield expansion, the combined capacity across all three existing plants (Oragadam, Vallam Vadagal, and Cheyyar) will reach up to 20 lakh motorcycles per year.
- The current capacity of 15 lakh units per year is reported to be approaching full utilization.
Proposed Capacity Addition and Timeline
- Phase I of the Greenfield expansion in Andhra Pradesh will add production capacity for up to 4.5 lakh motorcycles per year at full utilization.
- This additional capacity is expected to be completed during FY 2029-30.
- Post-completion of Phase I, the total production capacity for Royal Enfield motorcycles across all plants will reach approximately 24.5 lakh units per year.
Financing
The approved investment of ₹1,225 Crore for Phase I will be financed entirely through internal accruals.
Rationale
The stated rationale for the investment is that it is necessary for the company's readiness towards its long-term growth prospects.