SECURITIES AND EXCHANGE COMMISSION
                           Washington, D.C. 20549



                                 FORM 10-Q



            Quarterly Report Pursuant to Section 13 or 15(d) of
                    the Securities Exchange Act of 1934



  For Quarter Ended March 31, 1997        Commission file number: 0-17824


                          REXHALL INDUSTRIES, INC.
           (Exact name of Registrant as specified in its charter)


               California                         95-4135907
       (State of Incorporation)     (IRS Employer Identification No.)



           46147 7th Street West, Lancaster  California     93534
          (Address of principal executive offices)      (Zip Code)



                               (805) 726-0565
            (Registrant's telephone number, including area code)



Indicate by check mark whether the registrant (1) has filed all reports
required to be filed by Section 13 or 15(d) of the Securities Exchange Act
of 1934 during the preceding 12 months (or for such shorter period that the
registrant was required to file such reports), and (2) has been subject to
such filing requirements for the past 90 days. Yes   x    No _____.

                    Applicable only to Corporate Issuers

State the number of shares outstanding of each of the issuer's classes of
common equity, as of the latest practicable date:  2,636,030 as of 5/12/97.

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                         REXHALL INDUSTRIES, INC.

                                   INDEX

PART 1 - FINANCIAL INFORMATION                            PAGE NUMBER

  Item 1.

  Financial Statements:

     Balance Sheets at March 31, 1997                           3
     and December 31, 1996

     Statements of Operations for the 
     three months ended March 31,1997
     and March 31, 1996                                         4

     Statements of Cash Flows for the 
     three months ended March 31, 1997
     and March 31, 1996                                         5

     Notes to Condensed Financial Statements
     as of March 31, 1997                                       6

  Item 2.

  Management's Discussion and Analysis of
  Financial Condition and Results of Operations              7, 8

PART II - OTHER INFORMATION


  Item 6.

  Exhibits and reports on Form 8-K 10                          8

  Exhibits - Exhibit 11.  Computation supporting
  earnings per common and common equivalent share 
  amounts

  Reports on Form 8-K.  No reports on Form 8-K have
  been filed during the quarter for which this report
  is filed.

  Signatures                                                   9

  Computation Supporting Earnings Per Share                   10


<PAGE>


                                                 (Audited)     (Unaudited)
                                                December 31      Mar 31
PART I - FINANCIAL INFORMATION                     1996           1997

  Item 1. - Financial Statements

  REXHALL INDUSTRIES, INC.
  CONDENSED BALANCE SHEETS

  Assets:

  Current Assets                               $             $
    Cash and Cash Equivalents                      742,000        46,000
    Accounts Receivable                          3,208,000     4,971,000
    Inventories                                 13,793,000    12,618,000
    Other Current Assets                           151,000       181,000
    Income Tax Receivable                          271,000           ---
    Deferred Income Taxes                          439,000       439,000
     Total Current Assets                       18,604,000    18,255,000
  Property and Equipment - Net                   4,885,000     4,929,000
  Other Assets                                       7,000         7,000

        TOTAL ASSETS                           $23,496,000    $23,191,000

  Liabilities and Shareholders' Equity:

  Current Liabilities                          $              $
    Accounts Payable                             7,591,000      6,785,000
    Warranty Allowance                             355,000        262,000
    Reserve for Self-Insurance                     365,000        365,000
    Other Accrued Liabilities                      748,000        860,000
    Current Portion of long-term dept               26,000         26,000
     Total Current Liabilities                   9,085,000      8,298,000
    Deferred Income Tax Liabilities                  4,000            ---
     Long Term Debt                                826,000        818,000
    Total Liabilities                           $9,915,000     $9,116,000

  Shareholders' Equity:
    Preferred Stock - no par value;
    Authorized 1,000,000 shares; no
    shares outstanding at Mar 31,
    1997 and December 31, 1996
    
    Common Stock - no par value;
    Authorized 10,000,000 shares;
    Outstanding 2,636,030 shares
    atMay 12, 1997 and 2,636,030
    shares at December 31, 1996                $ 6,533,000    $ 6,488,000
    Retained Earnings                            7,048,000      7,587,000
       Total Shareholders' Equity               13,581,000     14,075,000
       TOTAL LIABILITIES AND
       SHAREHOLDERS' EQUITY                    $23,496,000    $23,191,000

<PAGE>


PART I - FINANCIAL INFORMATION

  Item 1. - Financial Statements

  REXHALL INDUSTRIES, INC.
  CONDENSED STATEMENTS OF OPERATIONS
  (UNAUDITED)




                                              Three Months Ended
                                       Mar. 31, 1996        Mar. 31, 1997
Sales                                    15,071,000           17,665,000

Cost of Sales                            12,840,000           15,265,000

Gross Profit                              2,231,000            2,400,000

Selling, General, Administrative
Expenses and Other Expenses               1,477,000            1,496,000

Income <Loss> Before Taxes                  754,000              904,000

Income Taxes                                293,000              366,000

Net Income <Loss>                       $   461,000          $   538,000

Net Income <Loss> Per Common Share      $      .17*          $       .20

Weighted Average Number of
Common Shares Outstanding                2,736,328            2,725,131



*Originally reported as $.18 per share of 2,606,027 shares outstanding,
however, considering the 5% stock dividend paid on 4/17/96, adjusted
earnings to $.17 per share.


<PAGE>


PART I - FINANCIAL INFORMATION

  Item 1. - Financial Statements

  REXHALL INDUSTRIES, INC.
  CONDENSED STATEMENTS OF CASH FLOWS
  FOR THE THREE MONTHS ENDED MARCH 31, 1996 AND 1997
                                                  1996             1997
CASH FLOWS FROM OPERATING ACTIVITIES:

Net Income(loss)                                $ 461,000       $ 538,000
Adjustments to reconcile net income to net cash
  provided(used)by operating activities:
Depreciation and amortization                     100,000          50,000
(Increase)Decrease in accounts receivable         561,000      (1,763,000)
(Increase)Decrease in inventories                 682,000       1,175,000
(Increase)Decrease in other current assets          2,000         (30,000)
    Increase(Decrease) in accounts payable       (568,000)       (806,000)
Increase(Decrease) in reserve for self insurance  132,000             ---
Provision for income taxes                            ---          (4,000)
(Decrease) in other current liab. inc. warranty   (55,000)        (93,000)
Increase in non-current accrued liabilities            -0-        112,000
Income tax receivable                                  -0-        271,000

Net cash provided(Used) by operating activities   1,315,000      (550,000)

CASH FLOWS FROM INVESTING ACTIVITIES:

Additions to property and equipment              (2,533,000)      (93,000)
(Increase) in other assets                               -0-           -0- 
Disposition of property and equipment                    -0-           -0-

Net cash(used) in investing activities           (2,533,000)      (93,000)

CASH FLOWS FROM FINANCING ACTIVITIES:

Borrowings of long-term debt                        876,000            -0-

Repayment of long-term debt                           6,000        (8,000)

Repurchase of stock                                     -0-       (45,000)

Net cash provided in financing activities           870,000       (53,000)

NET INCREASE(DECREASE) IN CASH AND CASH
 EQUIVALENTS                                       (852,000)     (696,000)

BEGINNING CASH AND CASH EQUIVALENTS               1,998,000       742,000
ENDING CASH AND CASH EQUIVALENTS                $ 1,146,000     $  46,000


<PAGE>


PART I - FINANCIAL INFORMATION

  Item 1.

                          REXHALL INDUSTRIES, INC.

                Notes to the Condensed Financial Statements

                               March 31, 1997



 1.  The accompanying condensed Financial Statements have been prepared in
accordance with generally accepted accounting principles for interim
financial information and with the instructions to Form 10-Q and Rule
Regulation S-B.  Accordingly, they do not include all of the information and
footnotes required by generally accepted accounting principles for complete
financial statements.  Prior period financial statements have been restated
to conform with current period financial statement presentation.  In the
opinion of management, all adjustments (consisting only of normal recurring
adjustments) considered necessary for a fair presentation have been included.

For further information refer to the Financial Statements and footnotes
included in the Registrant's Annual Report on Form 10-K for year ended
December 31, 1996.

The Results of Operations for any interim period are not necessarily
indicative of the results to be expected for the full year.


 2. Detail of Inventory                   March 31, 1997   December 31,1996

    Raw Material                            $ 7,684,000      $ 6,608,000
    Work in Process                           2,113,000        2,753,000
    Finished Motorhomes                       2,821,000        4,432,000

     TOTAL                                  $12,618,000      $13,793,000

<PAGE>


PART I - FINANCIAL INFORMATION

  Item 2. - Management Discussion and Analysis of Financial Condition and
Results of Operations


  Results of Operations

  For the Three Months ended March 31, 1997 and 
  For the Three Months ended March 31, 1996


  Sales - 1997 Compared with 1996

Sales for the quarter ended March 31, 1997, totalled $17,665,000 as
compared to $15,071,000 in 1996.  The units sold in 1997 were 310 vs. 274 in
1996.  Management believes that the increase in Sales from 1996 is primarily
due to an improving economy, with an expanded dealer network, and the
company's decision to hold its prices despite cost increases associated with
product improvements.


  Cost of Sales - 1997 compared with 1996

The Cost of Sales as a percentage of sales for the 1st quarter of 1997 was
86.4% vs 85.2% in the 1st quarter of 1996.  The cost of sales percentage for
1997 increased due to cost absorbtion of product improvements.


  Gross Profit - 1997 compared with 1996

Gross Profit for the 1st quarter of 1997 decreased to 13.6% from 14.8% for
the 1st quarter of 1996. This decrease was due to the cost increases
discussed in Cost of Sales above.


  Selling, General Administrative and Other Expenses-1997 compared with 1996

Selling, General Administrative, and Other Expenses increased in the 1st
quarter of 1997 by $18,000. Selling, General Administrative and Other
Expenses were 8.5% of Sales in 1997 as compared to 9.8% in the 1st quarter
of 1996.


<PAGE>


PART I - FINANCIAL INFORMATION

  Item 2. - Management Discussion and Analysis or Plan of Operations

  Income before taxes - 1997 compared with 1996

The increase in income before taxes in the first quarter of 1997 was due to
higher costs as discussed in sections Sales, Cost of Sales and Selling,
General Administrative and Other Expense above.

  Financial Condition, Capital Resources and Liquidity

At March 31, 1997, working capital was $9,957,000 as compared to working
capital of $8,596,000 at March 31, 1996.

Management believes that internally generated funds, cash on hand, and
borrowing available under its line of credit will be sufficient for the
Company's cash needs for the next twelve months.


PART II - OTHER INFORMATION


Item 6. - Exhibits and Reports on Form 8-K

  Exhibits

 a) Exhibit 11. Computation supporting earnings per common and common
    equivalent share amounts.

 b) Reports on Form 8-K. No reports on Form 8-K have been filed during the
    quarter for which this report is filed.


<PAGE>


                          REXHALL INDUSTRIES, INC.


                                 SIGNATURES




Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.


                                  REXHALL INDUSTRIES, INC. by
                                         (Registrant)


Date: May 15, 1997                  /S/William J. Rex
                                   William J. Rex
                                   Chairman, President and
                                   Chief Executive Officer

Date: May 15, 1997                  /S/Phillip J. Parks
                                   Phillip J. Parks
                                   Controller


<PAGE>


Exhibit 11.


  Computation Supporting Earnings per Common Share


                                             First Quarter

                                          1996            1997

Net Income                            $  461,000       $  538,000

Net Income per Common Share                 .17*              .20

Weighted Average Number of Common      2,736,328        2,725,131
Shares Outstanding


*Originally reported as $.18 per share of 2,606,027 shares outstanding,
however, considering the 5% stock dividend paid on 4/17/96, adjusted
earnings to $.17 per share.