Exclusive: Royal Enfield Sets 1.1 Million Production Target for FY26

Royal Enfield is targeting  to grow its output to 1.1 million units in the current financial year, while on the sales front, it expects domestic dispatches to increase by 6–7% and exports to go up by 20–25%, according to sources. The 1.1 million number represents its highest-ever production goal, and will also include contributions from EVs for the first time. 

The motorcycle manufacturer is banking on network expansion, brand building, and new models to help it set a new record in FY26.

Domestic Market Steady, Exports to Drive Next Leg

According to the company’s internal estimates, the Indian two-wheeler market is expected to grow by 6.4% in FY26. The premium segment (150cc and above) is projected to grow faster, at around 9%, as OEMs continue shifting focus towards higher-margin, aspirational products.

This aligns closely with Royal Enfield’s portfolio strategy in the mid-weight category (250–750cc), where it retains a commanding 85–90% market share despite rising competition from Triumph, Harley-Davidson, and new entrants.

Product Plan: Refreshes Over Launches

While FY25 saw a flurry of new product launches, FY26 will focus on consolidation. Sources say 10–12 product interventions—mainly refreshes and upgrades—are planned across the portfolio to maintain engagement and competitiveness in a dynamic market.

Electric Motorcycle Rollout Begins

FY26 will also mark a strategic milestone for Royal Enfield as it begins production of its first electric motorcycle. With 45 patents filed in FY25 and a dedicated EV lab operational, the company is setting up the supporting infrastructure to be ready in the second half of this financial year. 

The EV Motorcycle will likely launch globally at the EICMA Milan Motorcycle Show. A comprehensive go-to-market strategy is under development, and more than a dozen brand—and customer-facing activities are planned to build momentum ahead of the launch.

Capacity and Channel Expansion

With an installed production capacity of 1.3 million units, Royal Enfield is undertaking model-specific capacity expansions to meet rising demand. It also plans to deepen its domestic presence by adding 100–120 retail outlets in FY26, focusing on underserved regions such as Bihar, Odisha, Jharkhand, and the Northeast.

Meanwhile, its Re-Own pre-owned motorcycle network has scaled to over 200 outlets, offering an entry point for new customers and reinforcing brand loyalty across the ownership lifecycle. This initiative also boosts revenues from spares, service, and lifestyle merchandise.

Strong Growth in Non-Motorcycle Business

Royal Enfield’s non-motorcycle revenue streams—including branded apparel, accessories, and ride events—now contribute an estimated Rs 2,000–2,500 crore annually, growing in strong double digits and adding to the company’s overall profitability.

 

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