To prepare for potential disruption, Royal Enfield has already stocked U.S. dealerships with pre-tariff inventory, ensuring product availability through the peak riding season.
14 May 2025 | 1132 Views | By Darshan Nakhwa & Kiran Murali
Royal Enfield is closely tracking the evolving U.S. tariff environment and has taken steps to mitigate near-term disruptions, while maintaining a long-term focus on building its international business, said B. Govindarajan, Managing Director of Eicher Motors Ltd and CEO of Royal Enfield.
“Currently, you all know the tariff situation ...
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Royal Enfield is closely tracking the evolving U.S. tariff environment and has taken steps to mitigate near-term disruptions, while maintaining a long-term focus on building its international business, said B. Govindarajan, Managing Director of Eicher Motors Ltd and CEO of Royal Enfield.
“Currently, you all know the tariff situation is dynamic. We are also watching and evaluating our actions accordingly,” Govindarajan said, addressing the U.S. as a key market for the company.
To prepare for potential disruption, Royal Enfield has already stocked U.S. dealerships with pre-tariff inventory, ensuring product availability through the peak riding season.
“For this reason, we have stocked inventory—even with pre-tariff motorcycles—which are capable of catering to the season, which is here and now. For other markets also, we are constantly monitoring the tariff situation,” he said during a media call held to discuss the company’s financial performance for FY25.
Govindarajan reaffirmed the company’s long-term growth strategy in overseas markets, describing the approach as cautiously optimistic, even amid macroeconomic uncertainty. “Last year, we crossed almost 100,000 motorcycles in the international market. We are seeing some good green shoots, and our products are being well accepted,” he said.
Markets like Brazil are showing promising signs of growth. Royal Enfield is actively expanding its presence there through a CKD (Completely Knocked Down) assembly plant and broader retail footprint. “Brazil is really opening up, and we are preparing our act with a CKD plant and more retail outlets,” he added.
In Thailand, the company has already established a locally operated CKD facility, part of its wider effort to bring manufacturing closer to customers and improve responsiveness in international markets.
While acknowledging short-term global challenges, the CEO emphasised that Royal Enfield’s international strategy is long-term and gradual, reflecting a consistent push to build brand presence and customer loyalty.
“The international market is an important element of our business—but it’s not about the here and now. We are a long-term, aggressive company. We will continue growing international markets slowly and steadily,” Govindarajan said.
In FY25, Royal Enfield recorded total sales of just over 1 million motorcycles, marking an 11% year-on-year growth. Sales in the up to 350cc segment reached 868,667 units, a 7% increase, while the above 350cc segment posted 141,233 units, reflecting a robust 40% growth—underscoring the company’s strong performance in the premium motorcycle category.
The company’s international business also gained significant traction, with exports rising 37% year-on-year to 107,143 units during the fiscal.
Internationally, Royal Enfield is present in more than 60 countries, with a network of around 850 outlets. Globally, Royal Enfield operates six modern CKD (Completely Knocked Down) assembly units in Bangladesh, Nepal, Brazil, Thailand, Argentina, and Colombia, enabling it to cater to local demand efficiently and drive market-specific growth.