TVS Motor Company will increase its electric two-wheeler manufacturing capacity to about 80,000 units a month by the end of March 2027, as electric scooters gain a larger share of India’s two-wheeler market, Chief Executive Officer KN Radhakrishnan said.
The company is currently operating at a monthly electric two-wheeler capacity of between 60,000 and 65,000 units. Radhakrishnan told investors that TVS had already planned the next stage of expansion to meet rising demand.
“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,” he said.
Electric vehicle penetration in India’s overall two-wheeler market is currently about 11-12 per cent, according to the company. In the scooter segment, however, penetration has crossed 20 per cent, indicating that electrification is advancing faster in scooters than across the wider two-wheeler market.
TVS Motor is currently the market leader in electric two-wheelers, and its sales more than doubled to 186,186 units in the second quarter from 80,009 units in the same period a year earlier. The company said its domestic electric two-wheeler sales rose 129 per cent during the quarter, while industry volume increased by 84 per cent.
Radhakrishnan said the electric two-wheeler industry grew by nearly 75 per cent in the first half of the financial year. He added that TVS expected electric vehicles to maintain their momentum during the second half and that the company would continue to grow faster than the market.
The capacity plans place TVS alongside other manufacturers that are expanding electric scooter production. Bajaj Auto is increasing the capacity of its Chetak electric scooter to 80,000 units a month, while Ather Energy is raising capacity at its existing facility to more than 41,000 units and developing a new facility.
For Indian cities, the expansion points to a growing shift in the manufacturing base supporting electric urban mobility. Two-wheelers are a major mode of everyday travel, particularly for short and medium-distance journeys, and electric scooters are becoming a more prominent part of the vehicle market. The capacity race among manufacturers will determine how quickly companies can respond to demand across urban and suburban markets.
The company’s plans also come as the conventional internal-combustion-engine two-wheeler industry prepares for slower volume growth in the second half of the financial year. TVS management attributed the expected moderation partly to a high base in the year-earlier period. TVS said its electric two-wheeler capacity expansion would support growth in the coming quarters.
The next milestone for TVS is the planned increase to approximately 80,000 electric two-wheelers a month by March 2027, while the company continues to track demand and industry growth during the remainder of the financial year.
