Royal Enfield has reaffirmed that internal combustion engine (ICE) motorcycles will remain a core part of its business as it prepares to expand into electric mobility with its Flying Flea brand.

The company outlined its long-term strategy in its latest annual report through the RE-BALANCE framework, which is intended to balance investments between petrol-powered motorcycles and electric vehicles (EVs) while supporting customer engagement, business growth and sustainability initiatives.

Eicher Motors Executive Chairman Siddhartha Lal said Royal Enfield will continue investing in its electric vehicle portfolio while also investing in its petrol-powered motorcycle range.

"We are building this electric future with real commitment. At the same time, petrol motorcycles will remain central to Royal Enfield - we will continue to keep the petrol flag flying for as long as we possibly can, investing fully in new models, platforms and technology," Lal said.

The RE-BALANCE framework is based on four pillars focused on balancing investments in ICE motorcycles and EVs, strengthening customer experiences beyond motorcycles, pursuing profitable growth, and expanding sustainability initiatives. Under the products pillar, Royal Enfield said it will continue developing its ICE range while progressively expanding its electric vehicle portfolio.

The company acknowledged that changing consumer preferences and its continued reliance on ICE motorcycles present long-term business risks. As part of its enterprise risk assessment, Royal Enfield said it plans to address these challenges by investing in product development, maintaining brand relevance, engaging younger customers, modernising the customer journey, and accelerating innovation while preserving the brand's identity.

Royal Enfield's electric mobility plans are centred on the Flying Flea City+ brand, which the company said will complement, rather than replace, its existing motorcycle portfolio. The annual report stated that the current financial year will mark the commercial rollout of the first Flying Flea electric motorcycle.

The first model under the brand, the Flying Flea FF.C6, was showcased in several cities ahead of its launch in India, alongside the opening of the first Flying Flea store in Bengaluru. The electric motorcycle is priced at Rs. 279,000 (US$ 2,915), while the battery-as-a-service (BaaS) option reduces the upfront purchase price to Rs. 199,000.

Royal Enfield said Flying Flea will be developed through a phased, long-term strategy focused on design, technology and ownership experience, while the company continues investing in its ICE business.

Beyond product development, the RE-BALANCE strategy also focuses on creating a broader customer ecosystem. Royal Enfield said it aims to develop the ownership experience through apparel, riding gear, accessories and community initiatives. During the year, the company expanded its lifestyle portfolio with new apparel collections, expanded its accessories range, and continued its community-led events.

International expansion remains part of Royal Enfield's strategy. The company reported progress across overseas markets, with Brazil becoming its largest international market and its fastest-growing overseas market. It also said it remains the second-largest player in the mid-size motorcycle segment across Europe and several Asian markets while retaining the leading position in the SAARC region.

To support its international operations, Royal Enfield expanded its overseas manufacturing footprint by establishing additional assembly facilities in Bangladesh and Thailand. The company said the phased rollout of the Flying Flea brand, together with continued investments in manufacturing, retail operations and community engagement across global markets, will be guided by the RE-BALANCE framework as it balances its ICE business with a gradual expansion into electric mobility.