The Export War: Why RE and Hero are the Biggest Winners of the EU Deal

The headlines of January 2026 are ablaze with a single story. Critics call the India-EU Free Trade Agreement (FTA) the ‘Mother of All Deals.’ Most mainstream media outlets are focusing on the 110% to 10% duty drop for BMW and Mercedes-Benz cars entering India. However, they are missing the real asymmetric warfare happening in the opposite direction.

The true victors of this deal are not the European carmakers. Instead, the real winners are the Indian motorcycle giants. For the first time in history, the 10% tariff wall guarding the European market has crumbled to Zero. Consequently, this isn’t just a trade deal. It is the beginning of an Indian Export War. Royal Enfield, Hero, and TVS are no longer just ‘local heroes.’ They are now poised to become Europe’s favorite accessory.

Welcome to StreetSpec.in. We are looking beyond the headlines to show you why the ‘Made in India’ badge is about to conquer the streets of London, Berlin, and Madrid.


StreetSpec Intel: The 2026 FTA Export Cheat Sheet

  • Tariff Wipeout: The EU has eliminated the 10% import duty on Indian two-wheelers.
  • The Zero-Duty Edge: Indian bikes will become 10% cheaper in Europe overnight.
  • Hero’s Blitz: Hero MotoCorp is entering the UK, Germany, France, and Spain in Q2 FY2026.
  • RE’s New Platform: Royal Enfield is launching a 750cc platform specifically for European motorways.
  • TVS-Norton Synergy: TVS is using the Norton brand to capture the ultra-premium segment with zero-duty exports.

The Export War: Why RE and Hero Win the EU Deal

For decades, Indian manufacturers played a defensive game. They protected their home turf with high import duties. However, in 2026, the strategy has flipped to total offense. The India-EU FTA has effectively turned the European Union into a backyard for Indian factories. This market contains 450 million high-spending consumers who are ready for what India offers.

1. Royal Enfield: The 125th Anniversary Conquest

Royal Enfield is no longer just an ‘Indian brand that exports.’ It is a global mid-size leader based in Chennai. Currently, 26% of RE’s exports flow into the EMEA region. Because the 10% duty has vanished, RE is moving from ‘niche retro’ to ‘mainstream dominant.’

The 750cc Strike: Built for the Autobahn To celebrate its 125th anniversary in 2026, RE is unleashing the Himalayan 750 and the Interceptor 750. These are the first RE bikes built specifically for the Alps and the Autobahn.

  • The Engine: A refined 750cc parallel-twin producing roughly 60-65 HP.
  • The Market Play: Without the 10% tariff, these twins will undercut the Triumph Bonneville and Yamaha XSR700 significantly.
  • Special Editions: Watch for the Classic 650 125th Anniversary Edition. This bike will serve as the poster child for the new duty-free era.

Check Out: The Superbike Reset: How the 2026 India-EU FTA Just Crushed the 110% Tax Wall

2. Hero MotoCorp: The ‘Big Four’ Invasion

Hero MotoCorp is the king of ‘Scale.’ While they were historically a domestic powerhouse, their 2026 roadmap shows aggressive global ambition. Executive Chairman Pawan Munjal is leading a pincer movement: EVs first, then ICE reinforcements.

The EV Spearhead: Vida VX2 & Vida Z Hero is leading with its electric sub-brand, Vida. The Vida VX2 and the new Vida Z are the first Indian-made EVs to enter the UK and Germany with zero duty. In a Europe obsessed with the ‘Green Transition,’ these bikes represent a massive threat to local urban mobility brands.

The ICE Reinforcements: The XPulse 421 Adventure Furthermore, Hero is launching the Xtreme 250R and the highly anticipated XPulse 421 Adventure. In Europe’s A2-license category, a zero-duty XPulse 421 is a ‘category killer.’ It offers better adventure-touring value than anything from Japan.

Check Out: The Superbike Shadow-Loan: Why You’re Paying 18% (and How to Get 9.5%)

3. TVS and the ‘Norton’ Trojan Horse

TVS Motor Company is playing a more sophisticated game. While they continue to produce BMW’s sub-500cc bikes, they are pushing the TVS-Norton alliance into the premium European stratosphere.

TVS Chairman Sudarshan Venu recently noted that the FTA ‘transforms business environments.’ TVS isn’t just sending Apache RTRs. Instead, they are using the Norton brand to sell high-performance machines to Europeans who previously only looked at Ducati or BMW. By exporting Norton bikes from India under the FTA, TVS avoids high UK manufacturing costs while enjoying zero-duty entry.

Check Out: The 2026 Used Premium Bike Trap: Why A ‘Cheap’ Triumph or Himalayan is a Financial Nightmare


The ‘China + 1’ Shift: Why Europe Wants Indian Bikes

The 2026 FTA is not just about price. It is about geopolitics. Europe is actively moving its supply chains away from China. India is the perfect ‘Resilient Economy’ partner because of its massive R&D hubs and cost-efficient manufacturing.

The Engineering Advantage Indian bikes are no longer ‘cheap alternatives.’ Since Technology Transfer duties also hit 0% under the FTA, Indian firms are setting up R&D centers in Germany and Italy. Consequently, Royal Enfield and Hero are now designing bikes in Europe, for Europeans. They then build them in India for the world.

Moreover, removing duties on parts and machinery allows firms like Bosch and Continental to expand in India. This further improves the ‘global’ quality of Indian-made motorcycles.

Check Out: The Silent ADV: 5 Adventure Helmets That Don’t Whistle at 100km/h (Himalayan 450 Special)


Is the ‘Made in India” badge finally the world’s favorite accessory? Which Indian brand do you think will dominate Europe first—the retro cool of Royal Enfield or the high-tech scale of Hero? Drop your predictions below!

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