TVS Motor Company plans to increase its electric two-wheeler manufacturing capacity to 80,000 units per month by the end of March 2027 to meet strong demand for electric scooters, according to a senior company official.
“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,” TVS Motor Chief Executive Officer KN Radhakrishnan told investors.
Electric vehicle penetration has been growing at a very strong pace in the two-wheeler space. Penetration in the overall two-wheeler market has been around 11-12 per cent, while it has crossed the 20 per cent mark in the scooter segment.
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TVS Motor is currently the market leader in the electric two-wheeler segment.
Its major competitor, Bajaj Auto, is also enhancing Chetak capacity to 80,000 units. Ather Energy is also increasing capacity at its existing facility to over 41,000 units while its new facility is coming up.
TVS Motor’s electric two-wheeler sales more than doubled to 1,86,186 units in the second quarter from 80,009 units in the year-ago period. “Electric vehicles will continue to keep up the momentum, and you will see very good growth,” he said.
Radhakrishnan noted that the electric two-wheeler industry grew by nearly 75 per cent in the first half of the financial year.
TVS Motor’s domestic electric two-wheeler sales rose 129 per cent in the second quarter while the industry volume grew 84 per cent.
“We will continue to grow much ahead of the market,” he said, adding that capacity expansion would support TVS’ growth in the coming quarters as demand momentum for electric two-wheelers is expected to sustain in the second half of the year.
Meanwhile, management expects the ICE two-wheeler industry’s volume growth rate to moderate in the second half of the year compared with the first half, due to the impact of a high base in the year-ago period.
