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.
Also Read: Classic Legends to ride on 'SUV of bikes' for growth acceleration: Co-founder, Anupam Thareja
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.
Also Read: Yezdi, BSA debut twin scramblers to chase India’s premium bike boom: Check prices, key features & more
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. "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.
"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.
Also Read: Classic Legends to ride on 'SUV of bikes' for growth acceleration: Co-founder, Anupam Thareja
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.
Also Read: Yezdi, BSA debut twin scramblers to chase India’s premium bike boom: Check prices, key features & more
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. "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.
