Royal Enfield’s March To A Million

The maker of the oldest motorcycle in continuous production sold more than one million or 10 lakh units for the first time in fiscal 2025, nearly doubling since FY16. Over the same time, the overall motorcycle industry in India has grown by less than a fourth. 

In a way, Royal Enfield underscores the premiumisation wave that’s swept over India.

“Crossing one million units for a company like Royal Enfield is quite remarkable in a country where entry-level motorcycles and scooters clock 11-12 million units annually,” Amrit Raj, the author of Indian Icon: A Cult Called Royal Enfield, told me over the phone. “What’s especially remarkable is the bounceback since the dip that started even before Covid.”

A triple threat of stricter emission norms, regulation-mandated fixtures—anti-lock braking system, always-on headlights, etc.—as well as the pandemic, eroded Royal Enfield’s volumes from FY20-22. An ageing product line-up and lack of new nameplates kept demand muted.

The maker of the oldest motorcycle in continuous production sold more than one million or 10 lakh units for the first time in fiscal 2025, nearly doubling since FY16. Over the same time, the overall motorcycle industry in India has grown by less than a fourth. 

In a way, Royal Enfield underscores the premiumisation wave that’s swept over India.

“Crossing one million units for a company like Royal Enfield is quite remarkable in a country where entry-level motorcycles and scooters clock 11-12 million units annually,” Amrit Raj, the author of Indian Icon: A Cult Called Royal Enfield, told me over the phone. “What’s especially remarkable is the bounceback since the dip that started even before Covid.”

A triple threat of stricter emission norms, regulation-mandated fixtures—anti-lock braking system, always-on headlights, etc.—as well as the pandemic, eroded Royal Enfield’s volumes from FY20-22. An ageing product line-up and lack of new nameplates kept demand muted.

But Royal Enfield was hard at work. And it showed in FY23.

The Classic 350 was “reborn” and thriving, the 650 Twins brought in the dollars and euros, and a punt to package the J-Series engine in a street guise paid off. The “Sherpa” then carried the Madras Original to a new peak.

Royal Enfield’s sales jumped from six-year-low of 602,275 units in FY22 to 1,009,899 units in FY25. The product range now spans three platforms—350 cc, 450 cc and 650 cc—and 14 motorcycles, with nary a mechanical issue plaguing either of them. 

“The brand decisions have worked, as have the slew of launches,” Raj says.

Since the Meteor 350 broke cover in late 2020, Royal Enfield has stuck to its schedule to launch at least one model every quarter for seven years. The model line-up “is a good mix of the west and the east” with products that work both in India and globally.

The expansion of the 650 cc line-up has given Royal Enfield an aura product that’s drawing Harley-Davidson and Triumph customers from a segment above. The 350 cc customer is a ready pool of aspirational buyers.

What Royal Enfield now needs is a 250 cc motorcycle, Raj says, and “something is in the works”. But won’t that dilute the brand?

When Lal first disclosed his plans to make Royal Enfield the world’s largest middleweight motorcycle brand, he mentioned products that spanned 250-750 cc. While the interweb is abuzz with spy shots of a Himalayan 750 in the works, reports have also emerged that the company is in talks with CFMoto to develop a 250 cc hybrid powertrain.

That’s where the volumes are, with buyers graduating from 125-150 cc commuters to 250 cc motorcycles priced below Rs 2 lakh—a psychological barrier above which volumes slow to a trickle. Already, most Royal Enfield motorcycles are priced higher than Rs 2 lakh.

“What they need to crack is the sub-350 cc category,” Raj says. “Discretionary income may not rise, but the aspiration to own a Royal Enfield is still there.”

Hyundai India Plans A Hybrid: The South Korean carmaker plans to launch  its first hybrid car in India before this decade ends, amid an EV onslaught by primary rivals Tata Motors Ltd. and Mahindra & Mahindra Ltd. That’s in addition to the 26 new and upgraded cars the company plans to launch by 2030.

The Thump Turns Into A Whine:Royal Enfield is set to launch its first electric motorcycle in the final quarter of the ongoing financial year to enter the silent era of motorcycling. The Classic maker has earmarked an assembly line at its Vallam Vadagal plant near Chennai to manufacture the electric motorcycle, but is still working on a distribution strategy.

A Death By Suicide At Ola: Ola Group has confirmed that an employee at its AI unit, Krutrim, has died by suicide after Reddit posts claimed the person took the step due to “extreme work pressure”. The employee, whose name has been redacted due to privacy concerns, was on “personal leave” at the time of the incident, according to Ola Group.

On May 23, 1934, outlaws Clyde Barrow and Bonnie Parker—AKA Bonnie & Clyde—were shot to death in a stolen Ford by the Texas and Louisiana police.

The couple gained infamy during the Great Depression for their involvement in multiple bank robberies, burglaries and across the United States. They saw themselves as rebels against a difficult economic system. Their escapades captivated the public until their death and made them a pop culture icon after.

That’s all from us this week. Watch this space for more. Read more at ndtvprofit.com/auto.

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