Royal Enfield Bullet 650Royal Enfield has flagged its legacy positioning and continued reliance on internal combustion engine (ICE) technology as potential risks, warning that the brand could be perceived as outdated if consumer preferences continue to shift towards electric mobility.
Royal Enfield’s parent, Eicher Motors, said in its annual report that a lack of timely response or appropriate electric vehicle (EV) products could pose strategic risks.
“Dependence on Internal Combustion Engine (ICE) technologies and legacy features may make the brand appear outdated amidst shifting consumer sentiment and preference toward electric mobility. A lack of timely response or suitable EV products could present strategic risks,” said Eicher Motors, in its annual report.
However, the two-wheeler manufacturer said it is working on strengthening its resonance with younger audiences, enhancing customer experience and building a technology-led product pipeline centred around its core philosophy of “Pure Motorcycling”.
“Today, one out of every three Royal Enfield customers is below the age of 25 – a reminder that we continue to remain relevant, aspirational, and emotionally connected across generations,” said B. Govindarajan, MD, Eicher Motors and CEO, Royal Enfield.
Royal Enfield, forayed into the electric mobility space with Flying Flea C6, its first electric motorcycle, marking its entry into the City+ electric mobility segment.
A long-term strategy for Flying FleaThe company is following a slow and steady long-term plan, with an initial focus on IT hub places such as Bengaluru, Karnataka, and expansion to be followed in a multi-phased manner.“We will do it steadily, with a long-term intent, focussing on design that is functional and full of character, technology that serves the rider, and an ownership experience that goes beyond the machine,” Govindarajan said.
India’s leading mid-capacity motorcycle brand, Royal Enfield, forayed into the electric mobility space with Flying Flea C6, its first electric motorcycle, marking its entry into the City+ electric mobility segment. The phase-wise retail distribution for FF.C6 began in April 2026, with expansion to other parts of India and Europe planned during the year.
“The scrambler-styled FF.S6 will follow, as part of a broader family of electric motorcycles,” said Executive Chairman Siddharth Lal.
According to Vahan data as of July 27, Royal Enfield sold more than 80 units of Flying Flea C6.
Lal acknowledged the delicate balance required in navigating the industry’s shift towards electrification.
“Move too slowly and you can get obliterated; bet too big too early, or take the wrong turn, and that can be just as fatal,” he added.
He believes customer preferences, regulations, infrastructure and the readiness of individual markets would shape the pace of electrification in India. Thus, it first plans to understand customers, experiment with new technologies and scale its electric offerings as market conditions develop.
Petrol motorcycles remain centralAt the same time, the company doesn’t intend to move away from its core ICE business as it plans to invest in new models, platforms and technology.
“Petrol motorcycles will remain central to Royal Enfield – we will continue to keep the petrol flag flying for as long as we possibly can, investing fully in new models, platforms and technology,” he said.
The dual-tracked strategy comes at a time when the company reported its highest ever annual sales volume of more than 1.2 million motorcycles in FY26, with domestic sales rising 23 per cent to 1.11 million units and international sales increasing 20 per cent to 120,634 units.
The Indian electric motorcycle market size is expected to be $2.41 billion by 2035, compared with $0.784 billion in 2024, according to a Market Research Future report. This translates to a CAGR of 10.76 per cent.
Investments planned to address new demandsRoyal Enfield is planning to infuse a ₹958 crore investment in the brownfield expansion of its Cheyyar facility in Tamil Nadu. This expansion is expected to be completed by FY28 and will take annual production capacity to two million motorcycles.
Along with this, it has also announced plans for a greenfield manufacturing facility in Andhra Pradesh.
The company has also flagged rapid policy shifts and tightening regulations related to petrol motorcycles, EVs and environmental compliance as risks that could affect sales and operations.
To balance this, the company is doing regular regulatory tracking, quarterly global compliance checks, and technical expertise in emissions, engine management, and homologation.
It is also working with SIAM and ACEM (Association des Constructeurs Européens de Motocycles), while its Advanced Engineering team focuses on future regulations and fast-tracking key projects.
Published On Jul 27, 2026 at 06:31 PM IST
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