Classic Legends plans capacity expansion, weighs greenfield factory

Mumbai: Motorcycle maker Classic Legends is exploring capacity expansion plans that includes setting up a greenfield factory as its existing plant at Pithampur in Madhya Pradesh is likely to reach peak capacity by the end of this fiscal year.

"We are thinking whether we should invest in this plant to take it to 200,000, or take a new location closer to vendor bases," co-founder Anupam Thareja told ET.

On the financial front, Classic Legends posted operating profits in the March quarter, said Thareja, adding that margins are expected to improve going forward as volumes scale and fixed costs get absorbed.


The comments come against a backdrop of a hard-fought turnaround. Since its launch in late 2018, Classic Legends has struggled to establish a foothold in a segment dominated by Royal Enfield, falling well short of its early ambition of selling 100,000 units annually.

Early quality issues, inconsistent distribution, and slow product cycles dragged annual sales from 44,000 units in FY23 to 36,680 in FY24, and further to 32,430 in FY25. A combination of four new model launches, a cut in goods and services tax (GST) last September to 18% from 28% on motorcycles up to 350cc — which made its Yezdi, Jawa, and BSA range more affordable — and a fresh capital infusion of ₹1,000 crore between FY23 to FY26, helped in recovery.

In FY26, Classic Legends retailed 45,409 units, up from 32,482 a year ago, according to the Federation of Automobile Dealers Associations. Production is expected to cross 100,000 units in FY27 — a near 60% jump that would outpace the broader 200-800cc segment's projected 19% growth.

"We are back now and the journey is visible,” said Thareja. “I can tell you today we are sold out and we have more bookings than what we can make.”

The company is also ramping up its global footprint. Exports grew to 6,000 units in FY26 from 1,000 units the year prior, even as the US market remained inaccessible due to tariffs. The company aims to push overseas sales to 30-35% of total volumes within two years, with Brazil, Mexico, and Argentina among the target markets.

Classic Legends is also scaling its dealer network, targeting around 450 outlets each in India and globally. "Export is a very fundamental growth story," said Thareja.

On Thursday, the Mahindra, Phi Capital and Boman Irani-backed firm introduced two new models—the Yezdi Scrambler 350, priced from ₹1.99 lakh, and the BSA Scrambler 650 priced from ₹3.24 lakh.

The BSA, which has seen strong rider response in the UK, marks the brand's formal entry into the Indian scrambler market, he said. The company is betting big on the category, drawing a parallel with how SUVs reshaped the passenger car market. "Like SUVs did to cars, adventure and scrambler as a category has that potential to do to motorcycles," Thareja said.