TVS Motor plans to raise electric two-wheeler production capacity to 80,000 units monthly by March 2027, driven by rising EV demand and strong sales growth.

TVS Motor to Expand Electric Two-Wheeler Capacity to 80,000 Units Monthly by March 2027

TVS Motor Company plans to expand its electric two-wheeler manufacturing capacity to 80,000 units per month by the end of March 2027. The proposed expansion comes as demand for electric scooters continues to rise and electric mobility gains momentum in India's two-wheeler market.

The company is currently operating at a capacity of approximately 60,000 to 65,000 electric two-wheelers per month. The next phase of expansion is expected to strengthen its ability to meet growing customer demand and maintain its competitive position in the electric vehicle segment.

TVS Motor Plans Major Electric Scooter Capacity Expansion

TVS Motor Chief Executive Officer KN Radhakrishnan outlined the company's expansion plans while addressing investors. He said the manufacturer was already operating at a monthly capacity of around 60,000–65,000 units and had planned to increase this figure to approximately 80,000 units.

The additional capacity is expected to support production as demand for electric scooters increases across India. Expanding manufacturing capabilities could also help the company respond more effectively to market requirements in the coming quarters.

TVS Motor aims to sustain its growth momentum while preparing for continued expansion in the electric two-wheeler industry.

Electric Two-Wheeler Adoption Continues to Rise in India

India's electric two-wheeler market has experienced significant growth as consumers increasingly consider electric scooters as an alternative to conventional petrol-powered models.

According to Radhakrishnan, electric vehicles account for approximately 11–12% of the overall two-wheeler market. Their share is higher in the scooter segment, where electric models have crossed the 20% penetration mark.

The difference indicates that electric mobility has gained stronger acceptance among scooter buyers. Growing adoption is creating opportunities for manufacturers to expand production and introduce products suited to changing customer preferences.

The broader market trend is expected to remain an important factor in TVS Motor's capacity planning.

TVS Motor Reports More Than Double Electric Two-Wheeler Sales

TVS Motor recorded a substantial increase in electric two-wheeler sales during the second quarter compared with the corresponding period a year earlier.

The company's electric two-wheeler sales rose to 1,86,186 units from 80,009 units in the year-ago quarter, representing more than a doubling of volumes.

Domestic sales also recorded strong growth, increasing by 129% during the quarter. This performance exceeded the industry's reported volume growth of 84% over the same period.

The increase highlights the company's recent sales momentum and reinforces the importance of electric vehicles within its overall business strategy.

Electric Two-Wheeler Industry Records Strong Growth

Radhakrishnan said the electric two-wheeler industry expanded by nearly 75% during the first half of the financial year. He expressed confidence that electric vehicles would continue to deliver strong growth as consumers increasingly adopt electric mobility.

The company expects demand to remain supportive during the second half of the year. Its planned manufacturing expansion is intended to help it accommodate additional sales while pursuing growth ahead of the broader market.

TVS Motor's ability to convert rising demand into sustained sales will depend on factors including production capacity, product availability and market conditions.

Bajaj Auto and Ather Energy Also Expand EV Capacity

TVS Motor is not the only manufacturer increasing its electric two-wheeler production capabilities. Competitors are also preparing to meet the expected growth in demand.

Bajaj Auto is expanding manufacturing capacity for its Chetak electric scooter, with a target of approximately 80,000 units. Ather Energy is increasing capacity at its existing manufacturing facility to more than 41,000 units, while work on a new facility is also progressing.

These investments reflect the industry's efforts to prepare for a larger electric two-wheeler market.

As manufacturers add production capacity, competition is likely to remain strong, making product development, distribution and customer demand important factors in determining market performance.

TVS Motor Expects Growth to Outpace the Market

Radhakrishnan said TVS Motor intends to continue growing faster than the electric two-wheeler market.

The company expects its capacity expansion to support this ambition by improving its ability to meet demand. Its recent sales performance provides a strong foundation for the next phase of growth, although future results will depend on market conditions and the pace of electric vehicle adoption.

The planned increase to 80,000 units per month would represent a significant step up from current operating capacity.

Conventional Two-Wheeler Growth May Moderate

While the electric segment is expected to maintain its momentum, TVS Motor anticipates that growth in the internal combustion engine (ICE) two-wheeler market may slow during the second half of the financial year.

Management attributed the expected moderation partly to a high base in the corresponding period of the previous year.

This outlook suggests that different parts of the two-wheeler industry could experience varying growth patterns. Electric scooters are benefiting from increasing adoption, while conventional models may face a less favourable year-on-year comparison.

Conclusion

TVS Motor's plan to raise electric two-wheeler capacity to 80,000 units per month by March 2027 reflects its confidence in India's expanding electric scooter market. Strong sales growth and rising EV penetration are supporting the company's expansion strategy. With competitors also increasing capacity, the next phase of growth will depend on demand, production readiness and the ability to maintain market competitiveness.