TVS Motor to increase monthly EV capacity to over 50,000 units as sales boom

TVS Motor Company, India’s biggest electric two-wheeler maker, is preparing to ramp up its monthly EV production capacity from around 40,000–45,000 units to 50,000-plus in the next three months, and potentially higher by Q4.

TVS Motor Company currently has EV production capacity of around 40,000-45,000 units a month and is looking to take this to 50,000-plus units a month in the next three months, with a further increase expected by the fourth quarter, Gaurav Gupta, head of TVS Motor’s two-wheeler business in India, said on Thursday.

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“A lot of this depends on how our suppliers are able to spruce up their capabilities,” he said.

TVS Motor recorded registrations of 48,938 electric scooters in August, up 90% compared with 25,646 units during the corresponding month last year. In comparison, Bajaj Auto, the second-largest electric two-wheeler maker, witnessed 41,114 EV registrations in August.

The capacity expansion comes as electric two-wheeler penetration in the Indian market has risen sharply. Industry EV penetration is currently around 10%, compared with about 6.7% a year earlier. EV penetration in two-wheelers over the past three months has been between 10.5% and 11%, said Gupta.

“We are seeing a lot of momentum around the EV penetration. The Middle East crisis did drive people to look at EVs with a new lens because of concerns around fuel price hikes,” said Gupta. “We are bullish on the EV trend,” he added.

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The broader two-wheeler market is also providing a supportive backdrop. Industry volumes across ICE and EV two-wheelers grew 17.6% year-to-date between April and August, according to Gupta, with ICE growing 13.6% and EVs 72.4%.

“Within two-wheelers, we are seeing an increasing trend of consumers preferring top-end variants. The mix of higher-end variants is increasing,” Gupta said, adding that the premiumisation trend is “very much visible.”

TVS has a combined ICE-plus-EV market share of around 19.9%, he added.