Synopsis: Eicher Motors sets sales record: Royal Enfield sells 1.2M bikes in FY26, up 11% in March. Plans ₹958 Cr factory expansion to double output; VECV trucks grow 15%.
Eicher Motors has closed FY2025–26 on a high note. Its motorcycle brand, Royal Enfield, sold over 1.2 million units in the year the highest in its history. Additionally, it marks the second straight year of crossing the one-million milestone. In March alone, the company moved 1,12,334 units, up 11% from the same month a year ago.
Eicher Motors Limited’s stock, with a market capitalisation of Rs. 1,82,528 crores, is trading at Rs. 6,654, down 2.51. Furthermore, the stock over the past year has given a return of 24.4 percent.
Global Reach
Royal Enfield’s home market drove most of the growth. Domestic sales climbed 23% to 11,07,343 units in FY26. Exports also grew 23%, reaching 1,31,316 units across 80-plus countries. Brazil stands out as a key target market, with the company deepening its foothold there.
B. Govindarajan, Managing Director of Eicher Motors and CEO of Royal Enfield, said the brand is focused on building motorcycles for the current and next generation of riders. He added that the festive season delivered the brand’s best-ever volumes, and that community engagement through riding festivals has expanded significantly across regions.
Factory to Double Output Capacity
To meet rising demand, Royal Enfield announced a major expansion at its Cheyyar plant in Tamil Nadu. The investment stands at Rs 958 crore. Once complete, annual production capacity will jump from 14.6 lakh units to 20 lakh units a near 37% increase.
The expansion is a brownfield development, meaning Royal Enfield will build on its existing facility rather than start fresh. This approach typically lowers cost and cuts setup time. The move signals that the company expects strong demand to continue well into the next few years.
VECV Trucks and Buses
Meanwhile, VE Commercial Vehicles (VECV) Eicher Motors unlisted commercial vehicle subsidiary also posted healthy numbers. Total sales rose 14.8% year-on-year to 1,03,495 units in FY26. In March 2026 alone, VECV sold 13,311 units, up 10.1% from March 2025.
The light-to-medium duty (LMD) truck segment led domestic gains, growing 24% to 50,241 units. Heavy-duty trucks rose 14% to 25,155 units. However, bus sales declined domestic bus volumes fell 4% while exports of buses grew nearly 29%. VECV’s export business overall surged 35.6% to 7,024 units for the full year, even as March exports dipped due to timing factors.
Furthermore, Royal Enfield earned top rankings in the J.D. Power 2025 initial quality study and came first in the FADA Dealer Satisfaction Survey, adding to what has been a landmark year for the group.
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