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Royal Enfield is forming a technical alliance with the China-based CFMoto to source the 250cc engine for its upcoming hybrid motorcycle in India
Royal Enfield, the undisputed leader in the 350cc cruiser segment of motorcycles, is reportedly working on an even smaller bike with a 250cc hybrid powertrain setup. The Chennai-based two-wheeler brand is said to be in advanced stages of discussions with CFMoto, the Chinese bike-maker, to source the 250cc hybrid engine and the deal could be finalised in the first half of 2026. It has been further learnt that the Royal Enfield 250cc hybrid motorcycle will be positioned below the Hunter 350 with pricing in the ballpark of Rs 1.25-1.35 lakh (ex-showroom).
The sources aware of this development says that the 250cc engine from CFMoto will be designed and developed to meet the latest BS6 Phase 2 emissions norms. In fact, it will also be compliant with the upcoming Corporate Average Fuel Efficiency (CAFÉ) standards. Dubbed as a compact, hybrid and fuel efficient unit, it will help Royal Enfield in migrating towards mild-hybrid as well as full-hybrid configurations in the upcoming years.
“This engine isn’t just about meeting today’s regulations. it’s a future-proof solution that aligns with Royal Enfield’s long-term vision for sustainable growth,” informed the sources in the know of things. The next-gen 250cc platform has been internally codenamed as V. Apart from the engine, other elements such as chassis, styling and suspension will be taken care entirely by Royal Enfield.
Also Read: Royal Enfield To Launch 2 New Electric Bikes, First Launch In Early 2026
The collaboration with CFMoto is going to be strictly on the basis of technical stuff. We will not see any co-branded bikes or joint ventures from Royal Enfield and CFMoto in near future. Recently, the top brass at RE in the product, strategy and sourcing departments traveled to China on the sidelines of Shanghai Motor Show and had a discussion with CFMoto and various other technology suppliers.
After dominating the middleweight cruiser and adventure motorcycle segments in India, Royal Enfield is itching to rule the entry-level premium bike space. The company intends to target the first-time premium buyers who upgrade from 100-150cc motorcycles to a more advanced and powerful model. We can expect the new Royal Enfield 250cc hybrid motorcycle to retain its signature styling along with bells and whistles like all-LED lighting, digital instrument cluster and single-channel ABS.
Also Read: 8+ Upcoming Royal Enfield Bikes In India (Including EVs)
The company is also planning to upgrade its Chennai factory to ramp up the production in the coming years. It aims to achieve at least 85-90 percent of localization with the new 250cc hybrid bike to keep the pricing aggressive. Royal Enfield has set a target of doubling its yearly production volume from 1 million to 2 million units by 2030 to accommodate the 750cc motorcycles, Flying Flea electric bikes and this 250cc hybrid model.
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