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Amaravati: Royal Enfield, a motorcycle manufacturer owned by Eicher Motors, will invest Rs 2,200 crore to establish a manufacturing facility and vendor park at Satyavedu in Tirupati district, marking the company’s first major expansion outside Tamil Nadu.

The project, approved by the State Investment Promotion Board (SIPB) chaired by Chief Minister N Chandrababu Naidu, is expected to strengthen Andhra Pradesh’s automobile manufacturing ecosystem and generate around 5,000 direct and indirect employment opportunities.

“Royal Enfield‘s decision to establish its manufacturing facility in Andhra Pradesh with an investment of Rs 2,200 reflects the state’s strong industrial ecosystem, robust infrastructure and investor-friendly policies,” said an official press release late on Wednesday.

The state government has allocated land for the project across Vanelluru and Rallakuppam villages in Satyavedu mandal near the Andhra Pradesh-Tamil Nadu border.

The facility is expected to add nearly nine lakh units to Royal Enfield’s manufacturing capacity and strengthen India’s position as a global premium motorcycle manufacturing hub.

Apart from the core manufacturing unit, the project will include a dedicated vendor park aimed at bringing the company’s supplier ecosystem to Andhra Pradesh and accelerating the development of an automobile manufacturing cluster.

The first phase of the project is targeted for completion by 2029, while the second phase is expected to be completed by 2032, said the press release.

Meanwhile, Andhra Pradesh IT Minister Nara Lokesh said that the state government is focusing on attracting large-scale investments across mobility, electronics, renewable energy and advanced manufacturing sectors through infrastructure support and policy-driven industrial growth.

Lokesh noted that the project would further accelerate industrial development in southern Andhra Pradesh while reinforcing the state’s position as a preferred destination for manufacturing investments.