Eicher Motors Ltd’s Royal Enfield expects its motorcycle sales momentum to remain strong through the second half of FY26, supported by the impact of GST reforms that have boosted affordability in the sub-350cc segment.
“Post the GST, the demand and the enquiries have been holding up really well for us,” said B. Govindarajan, Managing Director, Eicher Motors Ltd, and CEO, Royal Enfield, during the company’s Q2 FY26 analyst call. “Even October had been very good. All the product interventions and inventory build-up have worked. Even in November, we are seeing the run rates are very good. We are bullish that our growth rate will continue.”
Govindarajan said the government’s decision to lower GST on two-wheelers up to 350cc to 18% had a “fantastic” effect on market sentiment. “The reform has really propelled enquiries. Our walk-in, tele, and online conversions have gone up. The enquiry-to-booking conversion has risen from around 20-21% to nearly 29-30%,” he said.
Royal Enfield’s performance during the quarter was buoyed by strong double-digit growth across its core 350cc portfolio. The Classic 350, one of the company’s best-selling models, grew 24.5% year-on-year, supported by a high-impact brand campaign and festive promotions. The refreshed Meteor 350, launched in September, recorded 30% growth, while the Hunter 350, which received a new colour option during the festive period, rose 51% year-on-year. The iconic Bullet 350 (Battalion Black edition) continued its resurgence with a 70% increase in sales over the previous year.
According to Govindarajan said the larger 450cc and 650cc models are gradually bouncing back, with the 650cc segment showing faster recovery. “Before the GST announcement, there was significant pre-buying in the 450cc and 650cc segments,” he said. “We are closely monitoring the trends and our response will be long-term, not tactical…We’ve also appealed to the authorities to extend the 18% GST rate to the 450cc and 650cc categories to ensure a uniform tax structure, which would help drive higher volumes and strengthen India’s global competitiveness.”
Royal Enfield achieved its highest-ever festive performance, crossing a remarkable milestone of over 2.49 lakh motorcycles during the festive months of September and October with 26% growth over the same period last year. In October alone, the company posted monthly sales of 1,24,951 motorcycles, registering a 13% growth over the same period last year. Royal Enfield also exported 8,107 motorcycles during the month.
Regionally, rural markets outperformed urban centres during the festive period. “The South, which wasn’t performing well earlier, has now picked up, and the East has done really well for us,” Govindarajan said, adding that rural retail growth remained robust post-festive.
On exports, Royal Enfield recorded a 49% year-on-year increase in volumes during the first seven months of FY26, reaching 78,548 units. “Brazil has emerged as one of our strongest markets outside India, and both Argentina and Colombia are doing very well,” he said. The company maintained top market positions in the UK, Brazil, and Argentina, and moved to number one in Bangladesh and Nepal. Europe, he added, “is catching up,” while the Asia-Pacific region remains slow, with Thailand yet to recover fully.
“Our ongoing focus on developing sustainable and efficient transport solutions positions us strongly for the future. As we progress, our dedication to long-term value creation remains firm, driven by customer-centric innovation, global aspirations, and meaningful brand experiences at every level,”
Royal Enfield currently offers a range of motorcycles from the Hunter 350, Classic 350, and Meteor 350 to the Interceptor 650, Continental GT 650, Super Meteor 650, and Classic 650. In the 450 cc segment, the company offers the Himalayan and Guerrilla. At the EICMA 2025 show in Milan, the company showcased its Bullet 650, Flying Flea S6, and a working prototype of the Himalayan 750, reinforcing its push in the mid-size segment globally.
In Q2 FY26, Eicher Motors reported a 45% year-on-year jump in consolidated sales to ₹6,171.59 crore and a 25% rise in net profit to ₹1,369 crore–its best-ever quarterly performance. EBITDA rose 39% to ₹1,512 crore, though margins softened slightly to 24.5% from 25.5% a year earlier.