The new policy includes a phased shift to electric mobility. It proposes that only electric auto-rickshaws will be registered from January 2027. Registration of new petrol and CNG two-wheelers will end from April 2028. It also provides incentives for electric vehicles and expands charging infrastructure.

The Eicher Motors stock came under pressure as investors flagged Royal Enfield's limited electric vehicle portfolio as a potential drawback. The policy is expected to accelerate EV adoption, particularly in the two-wheeler segment.

Royal Enfield entered the electric motorcycle segment in April 2026 with the launch of the Flying Flea C6, its first EV. Deliveries began in Bengaluru last week, with a phased rollout planned across other cities. Early reviews have praised the motorcycle's retro styling, ride quality and technology, although some reviewers have questioned its premium pricing and limited practicality for long-distance touring.

Eicher Motors is the listed parent of Royal Enfield, the global leader in middleweight motorcycles. In addition to motorcycles, Eicher has a joint venture with Sweden's AB Volvo—Volvo Eicher Commercial Vehicles, which operates in India's commercial vehicle space.

The company reported a 11.58% increase in consolidated net profit to Rs 1,519.95 crore in Q4 FY26, compared with Rs 1,362.15 crore posted in Q4 FY25. Total revenue from operations jumped 16% year-on-year (YoY) to Rs 6,080.09 crore in the quarter ended 31 March 2026.