TVS Motor to make 80,000 electric two-wheelers a month as EVs capture over 20% of India's scooter market

TVS Motor Company is preparing to scale up electric two-wheeler production to 80,000 units a month by the end of March 2027, as the company looks to capitalise on the rising popularity of electric scooters in India. The manufacturer is currently operating at a monthly capacity of 60,000-65,000 units, with further expansion already in the works, chief executive officer KN Radhakrishnan told investors. "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.

The proposed expansion comes as electric scooters gain traction among Indian buyers. Electric vehicles account for around 11-12% of the overall two-wheeler market, while their penetration in the scooter segment has exceeded 20%, according to Radhakrishnan.

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TVS electric two-wheeler sales jump over twofold in Q2

The company reported a sharp increase in electric two-wheeler sales during the second quarter, with volumes climbing to 1,86,186 units from 80,009 units in the same period last year.

TVS Motor's domestic electric two-wheeler sales grew 129% during the quarter, outpacing the industry's volume growth of 84%.

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Radhakrishnan said electric two-wheelers had maintained a strong growth trajectory, with the industry expanding by nearly 75% in the first half of the financial year.

"Electric vehicles will continue to keep up the momentum, and you will see very good growth," he said.

TVS Motor, currently the market leader in electric two-wheelers, expects the momentum to continue through the second half of the year. The additional capacity is expected to help the company cater to demand as sales expand.

Bajaj Auto and Ather Energy step up electric scooter production

Other electric two-wheeler manufacturers are also preparing to increase output as competition in the segment intensifies.

Bajaj Auto is working to raise production capacity for its Chetak electric scooter to 80,000 units. Ather Energy, meanwhile, is expanding capacity at its existing facility to more than 41,000 units and is also developing a new facility.

The expansion plans come as manufacturers prepare for a larger electric two-wheeler market and seek to strengthen their positions in the scooter segment.

Radhakrishnan said TVS Motor expected to continue outperforming the broader industry as demand grows.

"We will continue to grow much ahead of the market," he said, adding that increased capacity would support the company's performance in the coming quarters.

ICE two-wheeler industry growth may slow in second half

Despite the positive outlook for electric vehicles, TVS Motor expects growth in the internal combustion engine (ICE) two-wheeler industry to moderate in the second half of the financial year.

Company management attributed the expected slowdown partly to a high base in the year-ago period, which could make year-on-year growth harder to sustain.


Inputs from PTI