Eicher Motors plans Rs 2,500 crore investment for Andhra Pradesh expansion

Kinjal — Mon, 18 May 2026 10:45:20 +0000

Eicher Motors has announced a significant expansion initiative with an investment of up to ₹2,500 crore for a new greenfield facility in Andhra Pradesh. This development is aimed at bolstering the company’s production capacity to meet future growth demands.

The current production capacity of Eicher Motors stands at approximately 14.6 lakh motorcycle units per year. With ongoing brownfield projects in Tamil Nadu, this capacity is expected to increase to 20 lakh units annually by the end of the financial year 2027-28. The existing facilities are operating near full capacity, highlighting the need for additional production capabilities.

The government of Andhra Pradesh has approved a land parcel of 215.7 acres at Tada for this new greenfield expansion. The specifics of the capacity addition plan will be determined in upcoming board meetings.

The proposed investment will be financed through internal accruals, reflecting the company’s robust financial health and commitment to long-term growth.

Disclaimer: This article is based on a regulatory filing submitted to the National Stock Exchange of India (NSE).

Atul Sharma | Business Upturn

Eicher Motors plans Rs 2,500 crore investment for Andhra Pradesh expansion