Eicher Motors leases 4 lakh sq ft in Sriperumbudur industrial park

Mumbai: Eicher Motors, the maker of Royal Enfield motorcycles, has picked nearly 400,000 sq ft at Casagrand Industrial Park in Sriperumbudur, on the outskirts of Chennai, on a seven-year lease, underscoring the automaker's efforts to continue expanding its footprint in one of the country's key manufacturing hubs.

The lease is slated to commence August 31, while rent payments will begin from May 2027, providing the company time to prepare facility before starting commercial operations.

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Eicher Motors will pay a starting monthly rental of ₹82.45 lakh, translating to ₹21.06 per sq ft. The agreement provides for a 3.5% annual rental escalation. The company also paid a security deposit of ₹5.24 crore, showed documents accessed through Propstack, a realty data analytics platform.

The company leased 392,251 sq ft of chargeable area from Casagrand Blue Horizon at the industrial park in Santhavelur locality of Sriperumbudur. This transaction, executed on July 30, is a fresh lease.

Royal Enfield Motors, which dominates the Indian market for mid-size motorcycles of 250cc-750cc engines, is expanding its manufacturing footprint with a greenfield facility in Andhra Pradesh. The company will be investing ₹2,200 crore in two phases, with the first phase involving ₹1,225 crore. Once operational, the plant will augment Royal Enfield's total annual capacity by 900,000 motorcycles from the current 1.46 million units, allowing the automaker to cater to both domestic and export demand.

The new facility will make Andhra Pradesh the second manufacturing destination after Tamil Nadu for Royal Enfield.

Eicher Motors didn't respond to ET's email query.

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Sriperumbudur has emerged as one of India's most prominent manufacturing and industrial hubs, attracting investments from automobile, electronics, and engineering companies owing to its well-developed industrial ecosystem and proximity to Chennai. The region continues to witness healthy demand for Grade A industrial and logistics assets from both domestic and multinational occupiers.

Industrial and warehousing leasing has remained resilient across major markets in the country, backed by manufacturing expansion, supply chain diversification and growing demand for modern industrial facilities. Automakers continue to account for a major share of space absorption in established manufacturing clusters such as Sriperumbudur, Chakan, Sanand and Pune.

The Eicher Motors deal underscores continued preference of large occupiers for institutional-grade industrial parks having modern infrastructure and strategic connectivity.

Developers have also been expanding their industrial and logistics portfolios to cater to rising demand from manufacturing, automotive and allied sectors.