TVS Motor Electric Two-Wheeler Capacity Expansion Outlook

TVS Motor Company plans to expand its electric two-wheeler manufacturing capacity to 80,000 units per month by March 2027 to capture rising domestic demand for electric mobility. The company currently maintains a monthly operational capacity of 60,000 to 65,000 units, with its next phase of factory expansion already underway, according to CEO K. N. Radhakrishnan. Electric vehicles (EVs) now represent 11–12% of the overall domestic two-wheeler market, with penetration in the scooter segment surpassing 20%. Demonstrating strong market performance, TVS Motor’s electric two-wheeler sales surged to 1,86,186 units in Q2 FY27, up from 80,009 units in the prior-year period. This translates to a 129% jump in domestic EV sales, significantly outperforming the broader industry volume growth of 84%. Driven by accelerating adoption, the broader electric two-wheeler sector expanded by nearly 75% in the first half of FY27. CEO Radhakrishnan stated that TVS Motor Company—currently the market leader in the electric two-wheeler segment—expects to maintain its growth trajectory ahead of the industry average. At the same time, competitive intensity is ramping up across the market as rival manufacturers scale production footprints: Bajaj Auto is working to increase manufacturing capacity for its Chetak electric scooter to 80,000 units monthly, while Ather Energy is expanding existing facility capacity beyond 41,000 units alongside developing a new manufacturing plant. Conversely, growth in the traditional internal combustion engine (ICE) two-wheeler segment is projected to moderate in H2 FY27, largely due to a high statistical base from the previous year.