Royal Enfield, based in Chennai, plans to build a new factory in Tamil Nadu to support its growing global ambitions and diversification into electric vehicles. According to several sources, the company has already purchased a 60-acre plot of land in Cheyyar, on the outskirts of Chennai, which will serve as the primary production base for its two-wheeled EVs in the future.
In the next 12-24 months, Royal Enfield is expected to invest between Rs 1,000 and Rs 1,500 crore in order to expand both its product portfolio and manufacturing capacity.
While the first electric motorcycle is expected to be released from a dedicated setup within Royal Enfield’s existing Vallam Vadagal plant, which is its core IC engine production base, it has been learned that work has already begun at the Cheyyar plot to ensure a smooth transition to EVs as and when the portfolio of zero-emission models is developed and ready for rollout.
While Royal Enfield’s existing plants in Oragadam and Vallam Vadagal have a combined manufacturing capacity of over a million units per year and are capable of meeting rising demand in the coming years, the expected recovery in the domestic two-wheeler market, RE’s aggressive global expansion, and diversification into EVs necessitates the company being future-capacity-ready.
The 60-acre plot of land in Cheyyar was purchased to relocate some of the activities from the Thiruvottiyur facility, which has been in operation since 1995 and has become a thriving residential area. According to sources, the company may spend between Rs 100 crore and Rs 150 crore on groundwork, but the brand-new factory may not be ready until 2025.
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