TVS Motor Company will raise its electric two-wheeler manufacturing capacity to about 80,000 units a month by the end of March 2027, as demand for electric scooters continues to grow in India. The company is currently operating at a monthly capacity of around 60,000-65,000 units, Chief Executive Officer KN Radhakrishnan told investors.
The planned expansion will increase TVS Motor’s ability to supply electric scooters as electric vehicle penetration rises across the two-wheeler market. Radhakrishnan said penetration in the overall two-wheeler market was around 11-12 per cent, while it had crossed 20 per cent in the scooter segment.
“Now we are also enhancing the capacity. We are now operating at around 60-65,000 units. We have already planned for the next level of capacity expansion to about 80,000 units,” Radhakrishnan said, according to the report. He added that the company expected demand momentum for electric two-wheelers to continue during the second half of the financial year.
TVS Motor is currently the market leader in the electric two-wheeler segment, according to the report. Its electric two-wheeler sales more than doubled to 1,86,186 units in the second quarter, compared with 80,009 units in the same period a year earlier.
The company also reported strong domestic growth. TVS Motor’s domestic electric two-wheeler sales increased 129 per cent in the second quarter, while industry volume grew 84 per cent during the period. Radhakrishnan said the electric two-wheeler industry had grown by nearly 75 per cent in the first half of the financial year.
The capacity plans come as other manufacturers also prepare to increase production. Bajaj Auto is enhancing capacity for its Chetak electric scooter to 80,000 units, while Ather Energy is increasing capacity at its existing facility to more than 41,000 units and developing a new facility, the report said.
The expansion plans indicate that manufacturers are adding production capability in response to rising electric scooter demand rather than treating the segment as a limited niche. For cities, the shift is directly connected to the vehicles used for daily commuting and short-distance travel, although the supplied information does not specify how the additional production will be distributed across markets or what effect it will have on charging infrastructure.
Radhakrishnan said TVS Motor would continue to grow ahead of the market and that capacity expansion would support the company’s growth in the coming quarters. He also said the internal-combustion-engine two-wheeler industry’s volume growth rate was expected to moderate in the second half of the year because of a high base in the year-ago period.
