TVS Motor Company intends to increase its production capacity for electric two-wheelers to 80,000 units monthly by the end of March 2027. This decision was made to meet the growing demand for electric scooters, according to a senior company official.
TVS Motor's CEO, K. Radhakrishnan, told investors that the company is currently operating at a capacity of about 60,000–65,000 units, but an expansion to approximately 80,000 units has already been planned.
The penetration rate of electric vehicles in the two-wheeler segment shows very strong growth. Overall, the penetration in the two-wheeler market is around 11–12 percent, while in the scooter segment, it has exceeded the 20 percent mark.
TVS Motor holds leading positions in the electric motorcycle market. Its main competitor, Bajaj Auto, is also increasing the capacity of its Chetak model range to 80,000 units. Furthermore, Ather Energy is increasing production at its existing facility to over 41,000 units, and a new facility is under construction.
Radhakrishnan noted that TVS Motor's electric vehicle sales have more than doubled, reaching 186,186 units in the second quarter compared to 80,009 units the previous year. He predicts that the momentum of electric vehicle development will continue, and very good growth is expected.
He also emphasized that the electric motorcycle industry grew by almost 75 percent in the first half of the fiscal year. TVS Motor's electric motorcycle sales in the domestic market increased by 129 percent in the second quarter, while the overall industry volume grew by 84 percent.
According to Radhakrishnan, the company will continue to grow significantly faster than the market, as the capacity expansion will support TVS's growth in subsequent quarters, given the sustained demand for electric motorcycles in the second half of the year. At the same time, management expects the growth rate of the traditional (ICE) two-wheeler industry volume to slow down in the second half of the year compared to the first half due to the high base level from the previous year.
