‘Move too slowly, get obliterated’: Siddhartha Lal on Royal Enfield’s petrol-to-EV balancing act, Brazil growth bet

Eicher Motors Executive Chairman Siddhartha Lal has outlined a growth strategy for Royal Enfield that seeks to balance its formidable petrol motorcycle franchise with a “measured transition” to electric mobility, while simultaneously stepping up investments in manufacturing and overseas markets.

“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,” Lal said in his annual letter to shareholders, describing the challenge confronting the motorcycle industry as electrification gathers pace.

EV push, but petrol motorcycles stay central

Lal said Royal Enfield is “investing seriously in electric technology” and building the teams, products and capabilities required for the future. However, he stressed that the pace of the transition would ultimately be determined by customers, regulation, infrastructure and the readiness of individual markets.

The company’s Flying Flea electric motorcycle strategy reflects that calibrated approach. Royal Enfield launched its first electric motorcycle, the Flying Flea C6, in April 2026 and opened its first Flying Flea store in Bengaluru. The company is also preparing the FF.S6 electric scrambler, which is slated to hit the market by the end of 2026.

At the same time, Lal remains bullish on the conventional motorcycle franchise. Royal Enfield sold more than 1.2 million motorcycles globally in FY26 and commands about 87% of India’s 250cc-750cc mid-size motorcycle market.

Brazil emerges as ‘home’ market

Brazil is emerging as one of Royal Enfield’s most important international growth engines, with sales in the country jumping 71% in FY26. The company has doubled its dealer network to 55 stores over the past two years, while its wholly owned assembly facility is scheduled to become operational in 2027.

“Brazil is not a pin on the map for us. It is home. Our ambition is to become part of the country’s motorcycling culture,” Lal said.

The push is part of a wider global expansion strategy. Royal Enfield is already the No. 2 player in Europe’s mid-size motorcycle segment and holds strong positions in markets including Thailand, South Korea and New Zealand. Lal said the company intends to go deep in markets where it sees potential, rather than merely expanding its geographic footprint.

₹958 crore capacity bet

To support rising demand, Eicher Motors has committed ₹958 crore to a brownfield expansion of Royal Enfield’s Cheyyar facility in Tamil Nadu. The phased investment is expected to raise annual production capacity to 2 million motorcycles by FY2027-28, while a greenfield manufacturing facility in Andhra Pradesh is also part of the company’s longer-term expansion plans.

The homegrown brand is also attracting a younger customer base, with one in three Royal Enfield customers now below the age of 25, according to Lal. The company’s performance in FY26, he suggested, reinforces its confidence in the long-term appeal of the global mid-size motorcycle segment.

“A hundred and twenty-five years in, it still feels like the beginning,” Lal said, adding that the company sees “every reason for optimism” as it looks ahead.

Eicher Motors’ consolidated revenue from operations rose 24% to ₹23,408 crore in FY26, while profit after tax increased to ₹5,515 crore. The financial performance provides the backdrop for its simultaneous investments in capacity, international expansion and new technology.