Eicher Motors Forecasts Strong Two-Wheeler Demand Growth in Q4, Targets Market Outperformance

Eicher Motors expects two-wheeler demand growth to remain firm through the March quarter, even though the overall expansion rate is likely to ease to high single digits in FY27. As the parent company of Royal Enfield, it has articulated a clear objective to outperform the broader domestic two-wheeler market, leveraging a consistent pipeline of new product introductions and a sharper brand focus. During the December quarter earnings interaction, management highlighted a visible improvement in customer enquiries, stronger retail conversions, and a healthy order book entering the final quarter of the financial year.

Eicher Motors outlook on two-wheeler demand growth

Eicher Motors maintains that industry growth will stay resilient in the near term before gradually normalising next year. B. Govindarajan, Managing Director of Eicher Motors and CEO of Royal Enfield, emphasised that Q4 momentum remains encouraging, supported by improved enquiries, higher conversion ratios, and solid bookings. While the wider industry is projected to expand in high single digits in FY27, the company expects the premium motorcycle category to grow at a faster pace than the overall market. Management reiterated its strategic intent to consistently outpace industry growth.

Premium motorcycles driving expansion

The company continues to witness sustained demand in the mid-size and higher-displacement motorcycle segments. The 650cc portfolio has begun recovering after experiencing a temporary slowdown driven by GST-related pre-buying followed by a short-term demand adjustment. According to management, volumes softened immediately after revised tax rates were implemented but began showing positive momentum within roughly a month. A similar trend is emerging in the 450cc segment. Recent launches, including the Classic 650 and Bullet 650, alongside updates to the Himalayan platform, have strengthened product appeal and contributed to renewed customer interest.

Industry commentary from peers

Other leading manufacturers have also indicated a constructive outlook for the domestic two-wheeler market. Royal Enfield’s leadership noted that while demand has not yet fully reverted to pre-GST benchmarks, the trajectory remains steadily upward. The visible traction in enquiries and improved retail conversions underpins a positive near-term sentiment, even as industry-wide growth rates are expected to moderate in the next fiscal year.

Hero MotoCorp and Bajaj Auto outlook

Hero MotoCorp has projected double-digit domestic growth in the March quarter, with expansion likely to taper to high single digits in FY27. The company linked this outlook to GST-led pricing adjustments, improving rural demand conditions, and sustained momentum in the scooter segment.
Bajaj Auto has similarly indicated strong near-term demand, estimating industry growth of 12–15% in the immediate period. It anticipates the 125cc-plus motorcycle category to outgrow the broader market, supported by improving consumer sentiment and ongoing premiumisation within the segment.

Q3 FY26 performance of Eicher Motors

Eicher Motors delivered solid Q3 FY26 results, reflecting robust retail performance. Royal Enfield recorded sales of 325,773 motorcycles in the December quarter, representing a 21% year-on-year increase from 269,039 units. Domestic volumes rose 24% to 300,426 units, indicating stable demand across all three months of the quarter. The company maintained its dominant position in the mid-size motorcycle segment, closing the quarter with an 88.9% market share.

Festive strength and international performance

The festive period proved particularly strong, with more than 249,000 motorcycles sold across September and October, marking the brand’s highest-ever festive performance. Management attributed this achievement to focused marketing campaigns and a refreshed portfolio spanning 350cc, 450cc, and 650cc motorcycles.
International volumes declined marginally to 25,347 units compared with approximately 27,000 units in the previous year. Despite the slight drop in shipments, retail demand remained stable in key overseas markets such as Brazil, Argentina, and Thailand. The company also expanded its global presence by introducing updated models and inaugurating its first exclusive store in Lima, Peru, in December.
Looking ahead, Eicher Motors plans to introduce additional products over the coming year and roll out a flagship campaign commemorating Royal Enfield’s 125th anniversary. With sustained traction in premium motorcycles and a stable domestic two-wheeler demand growth outlook, the company remains confident of defending its leadership position and delivering growth ahead of industry benchmarks in the quarters to come.