Classic Legends initiates ESOPs for employees, US launch impacted by Trump tariffs
Mahindra Group-backed
Classic Legends
, the maker of iconic motorcycle brands Yezdi, Jawa, and BSA, is gearing up to ramp up volumes through aggressive product and network expansion in India, even as its US launch plans face a setback from the recently imposed tariffs.
Anupam Thareja, MD & Co-Founder, expects the company to turn profitable by the end of FY26, over five years after its re-entry into the Indian market with Jawa in 2018, followed by Yezdi in 2022 and BSA in 2024.
While an IPO remains 'in the plans', he said it could take place within the next two years. 'We don't need money immediately,' he told ETAuto, noting that employees have already been offered employee stock ownership plans (ESOPs). Mahindra holds a 60 per cent stake in Classic Legends, with the remaining ownership split between Anupam Thareja and Boman Irani, Chairman and Managing Director of the Rustomjee Group.
Anish Shah, MD & CEO of Mahindra & Mahindra, has previously described Classic Legends as one of the group's 'growth gems of the future,' reaffirming the company's commitment to its long-term vision.
As part of the earlier announced investment, Thareja said the company would invest around ₹875 crore by mid-next year, compared to ₹410 crore last year. The funds will be directed towards new product development, widening the dealer network, and accelerating exports.
Domestic market demand
Classic Legends on Tuesday launched the 335cc
Yezdi Roadster 2025
, priced between ₹2.10 lakh and ₹2.26 lakh (ex-showroom). The company had planned five new model launches for this year, with four having already hit the market and one more expected soon. The launch was staged at Mumbai's Mukesh Mills, a location infamous for its ghostly lore, chosen deliberately to reinforce Yezdi's positioning as a brand that 'refuses to die.'
The target is to double the sales this year. According to FADA data, the company retailed 32,343 units in FY25, compared to 31,016 units in FY24. As part of its aftersales expansion, it expects to cross 450 dealerships by the Diwali festive season. 'We aim to close this year with over 500 outlets which will technically cover 80% of the volumes in the segment,' said Sharad Agarwal, Chief Business Officer.
While optimistic about the festive season providing a demand boost in the industry, Thareja said market conditions remained challenging. 'India has been tottering for the last 12 months. The market is tight and urban markets particularly are not good for anybody,' he added whiel indicating that the seasonal push would rely on discounts, advertising, and finance schemes.
Competition rules
The premium motorcycle segment in which Classic Legends operates is dominated by Royal Enfield, with competition from Triumph (via Bajaj Auto) and Harley-Davidson (via Hero MotoCorp).
While unseating the market leader will be no small feat, Thareja remains bullish. 'Maybe someday we'll take over, but we've just started. India is a big motorcycling ground, and it's a battleground right now. You have one big boy and a lot of people circling around. My only submission is that if there's Coke, then we are the only Pepsi.'
By contrast, segment leader Royal Enfield sells over 9 lakh units annually and is preparing to launch its first electric motorcycles under the Flying Flea brand by the end of the current fiscal. Thareja, however, is firm on steering clear of the EV race for now with 'no such intention.'
While the company has the technology, including an electric BSA developed in the US, he pointed to inadequate charging infrastructure and muted consumer demand as reasons for holding back.
US-tariff impact
In the export market, Classic Legends recently launched the BSA Bantam in the UK, which it says has already sold out for the year. The company is also expanding its footprint into France, Germany, Austria, Italy, and Spain.
A planned August 17 launch in the US was cancelled after the American President announced 50 per cent tariffs on Indian goods. Still, Thareja is confident about the market's potential. 'It will open, it's a matter of time. Our distributors are desperately waiting.'
Reflecting on the brand's heritage, he added, 'BSA was once the largest motorcycle company in the world. Its largest market was the US and you can't be the largest motorcycle company in the world if you're not the largest in the US.'
Brand positioning
As part of its global strategy, BSA will be exported to developed markets while Jawa will focus on Eastern Europe, Latin America, including Brazil, Argentina, and Chile, and parts of North Africa, where it enjoys strong legacy appeal. Yezdi, meanwhile, will remain the company's 'main brand' for India.
Classic Legends is leaning heavily on nostalgia and brand recall rather than purely chasing volumes. Thareja said the world today is looking for simpler times. 'Look at Marshall speakers, vinyl records, Vans shoes, Converse. Even Polaroid cameras are back. There's a massive trend returning, but you cannot be inauthentic about it. You cannot create it. You cannot lie.'
He added, 'In a market that's always chasing the next big thing, it's a remarkable opportunity to bring back the iconic thing. We make performance classics.'
Echoing the sentiment, Anand Mahindra, Chairman of the
Mahindra Group
, remarked, 'To start a new brand, you can't manufacture authenticity overnight. It takes years, even decades, and it happens through the trust and memories of people who live with that brand. This motorcycle brand was an icon.'
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