Royal Enfield Cheyyar plant normalising; ₹958-cr expansion to lift capacity to 20 lakh units by FY28

Royal Enfield says production at its Cheyyar (Tamil Nadu) facility is back on track after a 7-10 day disruption from election-linked labour shortages, LPG and supplier constraints. Demand stays robust — April sales rose 57% YoY to 1.04 lakh units — backing a ₹958-crore brownfield expansion to scale capacity from 14.6 lakh to 20 lakh units by FY28.

— Filed Sun, 24 May, 2026, 15:34 IST · Source The Hindu BusinessLine · Updated

Royal Enfield says Cheyyar plant production is normalising after election-linked labour shortages, LPG and supplier constraints. Demand remains strong; ₹958-crore brownfield expansion will lift capacity from 14.6 lakh to 20 lakh units by FY28.

Why this matters

Cheyyar's ₹958-cr expansion stacks on the ₹2,500-cr Tada (AP) plant commitment, signalling Royal Enfield is aggressively scaling beyond 14.6 lakh units as 650cc demand and Bullet 650 dispatches ramp.

Retail-brand activity steady with 551 signals in the last 90 days.