Eicher Motors Limited said its motorcycle plants are operating at full capacity, producing about 4,300 to 4,400 units per day, as demand remained strong in the quarter ended 31 December 2025. The company produced around 110,000 motorcycles in the most recent month and has initiated discussions with suppliers to support further ramp-up.
“Our team is fully geared up,” said B. Govindarajan, Managing Director of Eicher Motors Limited and Chief Executive Officer of Royal Enfield. “If I had to tell you, we are delivering almost about 4,300 to 4,400 vehicles per day.”
The board has recently approved a brownfield expansion at its Cheyyar facility in Tamil Nadu to raise annual production capacity to 2 million motorcycles over eight quarters.
The production momentum supported Royal Enfield’s quarterly sales of 325,773 motorcycles, up 21 percent from 269,039 units a year earlier. Domestic sales rose 24 percent to 300,426 units, while international volumes stood at 25,347 units compared with 27,068 units in the same quarter last year. The company said it crossed 1 million motorcycles in year-to-date sales before the end of the financial year and reported an 88.9 percent exit market share in the middleweight segment.
“The third quarter was yet another robust one for Royal Enfield, continuing our steady growth journey of the past 6 quarters,” Govindarajan said.
The company said demand remains firm across its 350cc portfolio, with recovery visible in the 650cc and 450cc categories following earlier tax-related disruptions. “The rate of recovery of 650 cc started showing a positive sign within about a month’s time and 450 cc has started showing the rate of recovery now,” Govindarajan said.
To support global expansion, Eicher Motors continues to build out its completely knocked down (CKD) operations. Brazil has been identified as a key growth market, where the company is consolidating two assemblers into a larger facility. CKD operations are also in place in Thailand, Argentina, Colombia, Bangladesh and Nepal, with Mexico under evaluation.
“The fundamental base capacity, which is required to take it to 2 million, majority will be in India only,” Govindarajan said, adding that Indian plants will supply kits to overseas assembly units to retain cost advantages.
The company said tariff developments in the United States and Europe could influence export prospects. Govindarajan said the applicable tariff in the United States is currently about 18 percent, with additional steel and aluminium duties awaiting clarity. In Europe, the duty structure is around 6 percent, with further details pending.
VE Commercial Vehicles (VECV), the company’s joint venture in trucks and buses, reported Q3 volumes of 26,086 units, up 24.2 percent year-on-year. Revenue rose to INR 7,019 crore from INR 5,801 crore a year earlier, while profit after tax increased to INR 338 crore from INR 299 crore.
The light and medium duty truck segment recorded sales of 12,447 units, up 28.3 percent year-on-year, with a 34.5 percent market share. Heavy-duty truck sales rose 14.9 percent to 6,850 units, and exports increased 72.5 percent to 2,056 units.
“As far as the capacity is concerned, we have now 2 truck plants. One is in Pithampur and the other is in Bhopal. So for the current volumes, we are very well industrialized,” said Vinod Aggarwal, Vice Chairman of Eicher Motors Limited and Managing Director and Chief Executive Officer of VECV.
Eicher Motors Limited is the listed parent of Royal Enfield, a manufacturer of mid-sized motorcycles, and holds a joint venture in VE Commercial Vehicles, which produces trucks and buses under the Eicher and Volvo brands.