Exclusive: Royal Enfield Eyes Output of Up to 1.32 million 2Ws in FY27, Double-digit Growth in Domestic Volume

Despite growing competition from global brands such as Triumph, Harley-Davidson and Honda, Royal Enfield continues to outpace the broader motorcycle market, riding on sustained demand in the mid-size segment.

After crossing the 1-million mark in domestic dispatches and the 1.2-million mark in total dispatches in the financial year 2026, the company is looking to maintain its growth momentum with a fresh push in production and sales for the financial year 2027.

The company did not respond to Autocar Professional’s request for comment on its financial year 2027 production and sales plans.

According to sources familiar with the company’s plans, Royal Enfield is targeting to manufacture about 1.28-1.32 million two-wheelers in the financial year 2027, representing up to 6% growth from its estimated output of 1.24 million units in the financial year 2026. The company is also aiming to sustain strong domestic market demand momentum with double-digit growth after delivering a sharp rise in volumes over the past year.

Domestic volumes rose 23% to 1.11 million units, while exports also climbed 23% to 131,316 units, underlining balanced growth in both segments. The company’s total dispatches reached 12.39 million units in the financial year 2026, compared with 10.10 million in the previous year. 

The growth story continues to be driven largely by the 350cc portfolio, which remains the backbone of Royal Enfield’s volumes. Models with engine capacity up to 350cc accounted for more than 10.87 lakh units during the financial year 2026, growing significantly faster than motorcycles in higher displacement categories. 

Domestic sales stood at 1.11 million units, reflecting strong demand in the home market. Sources said the company is targeting to cross the 1.2 million mark in domestic sales this year as it builds on the momentum generated in the previous year.

The company’s rising volumes also translated into a stronger presence in the overall two-wheeler market. Its market share improved to 5.18%, up from 4.48% a year earlier, making it one of the major gainers in the industry during the financial year 2026. The steady performance was supported by sustained demand for its core models and continued expansion in international markets.

Alongside its core internal combustion portfolio, Royal Enfield has also taken its first step into the electric motorcycle segment, marking a significant shift in its long-term strategy. The company recently launched the Flying Flea C6, its first electric motorcycle, at an ex-showroom price of Rs 2.79 lakh, becoming the first traditional motorcycle maker in the country to roll out an electric motorcycle.

In a bid to lower the upfront cost, the company is offering the motorcycle at Rs 1.99 lakh under a battery-as-a-service option. Deliveries are scheduled to begin from the end of May, the company said.

The company plans to follow a phased rollout strategy, starting with Bengaluru, as it looks to gradually build its presence in the premium electric motorcycle segment. The Flying Flea C6 has been positioned as an urban-focused electric motorcycle, with the company aiming to differentiate on design, performance and connectivity rather than compete purely on price.

The model is the first product under the Flying Flea brand, which was unveiled at the EICMA show in Milan in 2024, where the company had announced two motorcycles — the classic-styled FF-C6 and the scrambler-styled FF-S6. The C6 will be followed by the S6 as part of the brand’s initial product portfolio.

With production targets rising, new products in the pipeline and a cautious entry into electric mobility, Royal Enfield appears to be positioning itself for another year of steady expansion as it builds on the strong base created in the financial year 2026. 

The company remains optimistic about the outlook for the premium motorcycle segment, which is expected to grow faster than the broader industry. The company believes the overall motorcycle market is likely to expand in high single digits in the coming year, while the premium segment is expected to maintain stronger momentum.

“We will continue to outgrow the market. That’s our ambition,” Royal Enfield CEO B Govindarajan told investors earlier this year, pointing to a strong product pipeline and brand-building initiatives planned to coincide with the company’s 125th anniversary celebrations.