It was a rare sight to see a Royal Enfield outside India a few years ago. The brand has slowly established itself in many countries, particularly in those where the riders are more interested in relaxed touring motorcycles with classic styling. Now, another significant market may soon be a larger piece of Royal Enfield’s global puzzle.
Royal Enfield is studying the possibility of setting up a CKD assembly plant in Mexico. The development comes after Mexico sharply increased import tariffs on motorcycles earlier this year. The discussions were revealed around the time Eicher Motors announced its FY26 earnings.
The company was earlier paying around 15 percent import duty in Mexico. From January 2026, that number reportedly increased to 35 percent. Because of this increase, Royal Enfield is now looking at local assembly options for Mexico.
The company is now exploring various possibilities for the market, said CEO B Govindarajan.
Royal Enfield has already had CKD operations in a number of overseas markets. The company currently runs around seven CKD assembly plants across different countries.
These include:
- Brazil
- Colombia
- Bangladesh
- Nepal
- Thailand
The company says it already has a proper system to establish CKD facilities in new markets.
If import duties remain high, Mexico could become the next country where Royal Enfield starts local assembly.
International business continues to grow
Royal Enfield’s overseas business performed strongly during the last financial year. In FY26, the company sold almost 1.2 lakh motorcycles outside India. International sales also recorded around 20 percent growth compared to the previous year.
The company’s international business reportedly generated around Rs 3,288 crore in revenue during the financial year.
Brazil is currently Royal Enfield’s biggest market outside India. It is also one of the fastest-growing regions for the brand.
The company sold more than 25,000 motorcycles in Brazil last year alone. With demand growing steadily, the company is also preparing another CKD facility in Brazil. Royal Enfield said Brazil recorded around 71 percent yearly growth, making it one of the brand’s strongest international markets so far.
The company is also working with two local partners for CKD assembly operations in Brazil.
Royal Enfield has said it remains cautiously optimistic about its international business despite global market uncertainties.
More motorcycles planned for global markets
As part of its broader expansion plans, Royal Enfield is also readying a number of new motorcycles for the upcoming months.
The following models are expected to be released soon:
- Bullet 650
- Himalayan 440
- Himalayan 750
- Continental GT 750
- Scram 450
In addition to these new launches, the company is also expected to update several motorcycles from its existing lineup. Reports suggest around 13 updates are being planned across the current range.
Royal Enfield is also expected to expand beyond its current 650cc lineup in the coming period.
With the global demand for middleweight motorcycles on the rise, Royal Enfield is now focusing more on the international market as well.
Production plans are growing in India
The company is also planning to expand its manufacturing capacity in India. Royal Enfield is said to be looking to increase its annual production to nearly 2 million units in the coming years from the current level of around 1.4 million units.
A new manufacturing plant in Andhra Pradesh is also anticipated to aid these future expansion plans.