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The Mahindra-backed maker of Jawa, Yezdi and BSA motorcycles, is sharply scaling up its manufacturing capacity

ICICIdirect Research 10 Sep 2026 DISCLAIMER

News: According to media sources, Classic Legends, the Mahindra-backed maker of Jawa, Yezdi and BSA motorcycles, is sharply scaling up its manufacturing capacity as it targets strong growth in FY27. The company plans to increase production capacity from around 1.2 lakh units to more than 2 lakh motorcycles by the end of 2026, compared with FY26 sales of 45,409 units, which were already up nearly 40% YoY. Management is targeting more than 1 lakh motorcycle sales in FY27, supported by new products, an expanding dealer network and a stronger export push. The company has launched three updated Jawa models and plans up to four new motorcycles in FY27. Its retail network has grown to more than 450 touchpoints, with the company targeting over 500, while exports have grown more than fivefold from a low base

View: The aggressive capacity expansion is positive for Classic Legends and its parent M&M. Moving from 45,409 units sold in FY26 to more than 1 lakh units in FY27 would require sales to more than double, making product acceptance and dealer expansion critical. The recent improvement in volumes, new Jawa launches and stronger retail registrations indicate that the brand is gaining momentum, but it still operates at a much smaller scale than established premium players such as Royal Enfield. The company’s current retail run rate is ~4,600 motorcycles a month.

Impact: Positive

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