“This is the company that should have an IPO. It will be the most valuable one in its segment. Next year will be our first full year with all the new launches. Coupled with that the global expansion underway will also help. The year after next will also be crucial. In two years, we will have the company ready,” Thareja told ET on the sidelines of the launch of the 350 Jawa 42 FJ model with prices starting at ₹199,000.
The company’s motorcycles are positioned in the fast-growing middleweight (250cc to 350cc) segment where Royal Enfield is the market leader. Classic Legends retailed 2,131 units in July compared to Royal Enfield’s 57,325 units, according to the Federation of Automobile Dealers Associations (Fada).
“We may fall, we may slip, but we’ll rise, and we will keep on running. We are running a marathon, and we hope that all of you will stay the distance with us, and cheer us on,” Anand Mahindra, chairman, Mahindra Group said at the launch.
While M&M owns 60% of Classic Legends, Phi Capital (a private equity firm founded by Thareja) and Boman Irani, a real estate developer, hold the rest.
The 350 Jawa 42 FJ is the third model introduction in a span of less than two months. In early August, Jawa unveiled the 2024 Jawa 42, following it up with the launch of BSA Gold Star on August 15. These were in addition to the new 350, Perak and Adventure that it launched earlier in 2024.
Classic Legends now plans to ramp up production to boost annual volume to up to 90,000 units by March-end. It also plans to add 100 outlets by Diwali and increase the total network to 650.
Thareja claimed that even with the current low sales volume, the company’s business model has enabled it to break-even and be profitable.
“We can launch models with premium parts because of the valuable engineering resources we have. It allows us to launch a great motorcycle with a huge margin,” he said, adding that the company “is not bothered about monthly volumes.” He said the newer models will generate more profits for the company.
Last year, Classic Legends said it will invest ₹1,000 crore till FY26. It was the first major outlay by the company since it started operations in 2018 with the relaunch of the iconic Czech brand, Jawa in India, followed by Yezdi.