Royal Enfield, the iconic Indian motorcycle brand, is planning to launch a new 250cc platform, codenamed “V”, which will be powered by an engine licensed from Chinese motorcycle giant CFMoto. This move is aimed at meeting India’s upcoming fuel efficiency mandates and tapping into the growing entry-premium market. The new engine is designed to be compact, fuel-efficient, and adaptable to hybrid configurations, allowing Royal Enfield to pivot towards mild-hybrid or full-hybrid configurations in the future.
The partnership with CFMoto is a technical alliance, with Royal Enfield retaining control over the chassis, suspension, and design of the motorcycle. The engine technology will be sourced from CFMoto, but the bike will still embody Royal Enfield’s signature DNA and aesthetic. The company is expected to price the new 250cc models between Rs 1.25 lakh-1.35 lakh, targeting first-time premium buyers and commuters upgrading from smaller bikes.
The “V” platform is a key part of Royal Enfield’s strategy to double its annual production from 1 million to 2 million units by 2030. The company is also working on a 750cc twin-cylinder platform and an electric vehicle program, as it diversifies its portfolio. The new 250cc engine will be produced at Royal Enfield’s Chennai facility, with 85-90% localization to keep costs competitive.
The partnership with CFMoto is a significant development for Royal Enfield, as it marks a shift towards a more tech-forward and sustainable approach. The company is looking to leverage Asia’s advanced component ecosystem to fuel its growth, and the CFMoto deal is a key part of this strategy. With the Indian government’s focus on electric vehicles and fuel efficiency, Royal Enfield is positioning itself for a hybrid-powered future, while still maintaining its iconic brand identity.
The competitive landscape in the entry-premium segment is heating up, with rivals like Bajaj Auto, TVS Motor, and Honda launching technology-rich offerings. Royal Enfield’s partnership with CFMoto and its focus on hybrid technology could give it an edge in the market, both in India and export markets like Southeast Asia and Europe. The company’s outreach to CFMoto reflects a pragmatic approach to global collaboration, blending its heritage with cutting-edge tech to stay ahead in a rapidly evolving industry.