Royal Enfield is sharpening its global expansion focus on Brazil, which is now emerging as one of its fastest-growing international markets. The company is also exploring setting up its own completely knocked down (CKD) manufacturing facility in the country to support long-term growth.
Eicher Motors Managing Director and Royal Enfield CEO B. Govindarajan said Brazil is set to become a key pillar in the brand’s overseas strategy, backed by strong demand and rising acceptance of its motorcycles.
He noted that Brazil is becoming the “next big market” for Royal Enfield, with sales crossing 35,000 units in FY26, marking a sharp 71% year-on-year jump. The company currently operates more than 20 retail outlets in the country and plans to expand its dealership network further.
According to him, Royal Enfield is gradually rolling out its lineup in Brazil and sees strong market potential. “The market is buoyant, and the brand is well respected. We are focusing more on Brazil because we see huge growth ahead,” he said.
At present, Royal Enfield relies on two partners for CKD assembly in Brazil, but it is now evaluating setting up its own facility to support future scale and efficiency.
Globally, the company already operates around seven CKD units across markets such as Bangladesh, Nepal, Brazil, Thailand, Argentina and Colombia. Govindarajan said the company has developed a standard operating “playbook” for CKD expansion that can be replicated in new markets.
Royal Enfield now sells in over 80 countries and runs more than 3,200 retail outlets worldwide.
Govindarajan also highlighted that Brazil shares a strong cultural and lifestyle connection with India when it comes to motorcycling, helping models like the Hunter, Guerrilla, Himalayan and Super Meteor gain traction.
The company’s international growth has been supported by strong overall performance in FY26. Exports rose 23% year-on-year to 1.31 lakh units, while total sales increased 23% to 12.39 lakh units. Domestic sales also grew 23% during the same period.
Its current portfolio includes models such as the Hunter 350, Classic 350, Bullet 350, Himalayan 450, Guerrilla 450, Interceptor 650 and Continental GT 650. The company has also entered the electric segment with the launch of the Flying Flea C6 under its new EV brand.
On the manufacturing side, Royal Enfield has an installed capacity of about 14.6 lakh units annually. A new expansion module adding 1.5 lakh units is expected by July 2026, raising capacity to around 16 lakh units.
The company has also allocated ₹958 crore for a brownfield expansion at its Cheyyar plant, which will be rolled out in phases and completed by FY28. Once finished, total capacity will rise to nearly 20 lakh units annually.
In addition, Royal Enfield is planning a greenfield manufacturing plant in Tada, Andhra Pradesh, subject to approvals and market conditions.
For FY27, the company has guided capital expenditure of around ₹2,200 crore, with nearly half directed toward expanding production capacity and the rest toward new product development.
