Price increase of ~1.5% on select models in Q2
Management confirmed a price increase of about 1.5% on certain models in the domestic market during Q2 FY24.
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New product launches planned over 3-4 years
Royal Enfield has a pipeline of 13-14 new products, with launches spaced out over the medium term (3-4 years).
Focus on growing mid-size motorcycle market to 1.5M units
Management expects the Indian mid-size (250-750cc) motorcycle market to grow from ~1M to 1.5M units in the next few years.
Double-digit growth expected for mid-weight segment
Management expects the mid-weight motorcycle segment to return to high single-digit to double-digit growth as consumer confusion settles and new products like Guerrilla and Classic drive demand.
New Classic launches imminent
Exciting updates and collaborations for the Classic model will be announced within a week, expected to boost volumes.
VECV to continue outpacing CV industry growth
VECV expects to maintain market share gains through dealer network expansion and new product introductions, with industry growth supported by government capex and festive demand.
Increased marketing spend planned
Royal Enfield will increase brand-building and marketing activation spends to drive awareness for Hunter, Classic, and other models.
Capacity expansion via modular approach
Current capacity is ~1.2 million units, operating at ~90% utilization. Future capacity will be added in modules, focusing on new products rather than heavy capex.
Festive season volume growth expected
Management is bullish on festive demand, supported by new Hunter 350 colors, media campaigns, and dealer floor financing for ~575 dealers.
Commodity cost headwind of ~30 bps in Q1
Steel and aluminum impacted margins by ~50 bps, partially offset by value engineering (20 bps). Further impact expected in Q2, with mitigation through price increases and cost actions.
New Himalayan 452 to be a global volume driver
The all-new Himalayan 452, based on the Sherpa engine, is expected to significantly boost volumes and brand stature globally, with potential to disrupt the adventure touring segment.
Capacity of 1.2 million units with modular expansion
Current installed capacity is ~1.2 million units across both plants, with modular lines allowing further expansion as needed.
Capex spend at 2-3% of revenue
Capital expenditure is expected to remain around 2-3% of revenue, with flexibility to invest more as product portfolio evolves.
Royal Enfield to sustain marketing and product launch momentum
Management plans continued market activation and product-level campaigns to sustain demand post-festive season.
VECV expects CV demand rebound in H2 FY25
With pro-growth budget and infrastructure investments, VECV anticipates industry recovery in the second half.
Royal Enfield Flying Flea EV launch in early 2026
First electric motorcycle under new brand Flying Flea to launch in early 2026, with 200+ strong EV team and 28 patents filed.
VECV to deploy 500 LNG trucks under MoU with Baidyanath
Deliveries of Eicher Pro 6355 LNG trucks have started, with ramp-up expected in coming quarters.
Capacity expansion to 1.35 million units annually
Debottlenecking and new module investment will increase capacity from 1.2 million to 1.35 million, with new capacity kicking in from Q1 FY27.
VECV investment of ₹544 crore for AMT plant
Greenfield factory in Madhya Pradesh for Volvo's 12-speed automated manual transmission, with most production exported to Asia and Oceania.
H2 CV industry volume recovery expected
Management expects better growth in H2 due to infrastructure spending, GST impact, and replacement demand, with second half typically 55% of annual volume.
New product launches to continue at a steady pace
Management plans to launch new motorcycles on the Sherpa 450 platform and other platforms over time, but will focus on stabilizing existing products in the coming financial year.
Export wholesale growth expected in 2-3 quarters
Management expects export wholesale volumes to turn positive in about 2-3 quarters as macroeconomic conditions improve and new products (Himalayan, Shotgun) reach international markets.
VECV to participate in e-bus tenders only with reasonable profitability
VECV will bid for STU e-bus tenders only if payment security and profitability are assured, having participated in the latest tender after resolution of payment concerns.
Flying Flea EV launch in Q1 2026
Royal Enfield's electric motorcycle brand Flying Flea will hit the market in the first quarter of 2026, with initial capacity of 1.5 lakh units per annum at Vallam Vadagal plant.
VECV CapEx of ~INR 1,000 crore for FY25
VECV is on track to spend around INR 1,000 crore in CapEx for the full year, as announced at the beginning of the year.
Continued growth focus with marketing spend
Management will continue to invest in brand-building and market activation, though the lumpy launch-related expenses will moderate.
Capacity expansion to 2 million units by FY28
Brownfield expansion at Cheyyar with ₹958 crore investment over two years, targeting 2 million annual capacity by FY27-28.
Q4 FY26 growth momentum to continue
Management expects Q4 to maintain growth trajectory with positive inquiries, conversions, and bookings.
Flying Flea C6 electric launch in next quarter
C6 electric motorcycle to be launched in the next quarter, with S6 following around EICMA time.
January 2026 price increase of ~0.5% on select models
Blended price increase of about 0.5% taken in January to offset commodity inflation.
Double-digit mid-weight motorcycle market growth expected
Management anticipates the Indian middleweight segment to grow in double digits in FY25, with Royal Enfield positioned to outpace the market.
VECV to focus on discount rationalization
VECV aims to reduce discounts and improve transaction prices rather than increase MRPs, supporting margin improvement.
New 450cc platform motorcycle launch soon
A new motorcycle on the Sherpa 450 platform will be launched soon, expanding the platform beyond the Himalayan.
Electric small commercial vehicle commercial launch in January 2025
VECV's new electric small commercial vehicle (2-3.5 ton) will be commercially launched from January 2025, following pilot deliveries.
Capex of INR 1,200-1,300 crore in FY26
Investment in EV manufacturing facility, product development, and new listings.
Price increase of 1.15% on select models in April 2025
Select Royal Enfield models saw a price hike in April to offset OBD2B costs.
EV launch (Flying Flea) on track
Flying Flea showcased at EICMA; official launch planned as per timelines.