TVS Motor Company, one of the pioneers in India’s electric two-wheeler market, is reviewing a further expansion of its electric two-wheeler manufacturing capacity. The growing demand has brought the company closer to an annual EV production of nearly 5 lakh units, according to a top company official. Speaking to analysts after the company’s Q3FY26 results conference call, KN Radhakrishnan, CEO and Director, TVS Motor Company, said the capacity revision is driven by strong demand for the company’s electric vehicle portfolio and easing of supply constraints.
- TVS has grown more than the electric vehicle industry in the last quarter
- Its EV sales stood at 1.06 lakh units in Q3FY26.
- Supply constraints have eased, leading to more stable production volumes.
TVS iQube is India’s best-selling electric scooter
The newly launched Orbiter is also seeing steady demand
Radhakrishnan said demand for both the iQube and the recently launched Orbiter electric scooter has been “encouraging, with the two products targeting different customer segments rather than cannibalizing each other.”
“It’s too early to give real usage trends, but demand is excellent in the markets where we have launched it,” he said, referring to Orbiter. “The good news is that iQube is also growing and Orbiter is also growing.”
The Orbiter is positioned as a differentiated offering for customers looking for a lower entry point to EV ownership, with a focus on maximizing range, while the iQube continues to be the bread and butter of TVS’ EV sales with its multiple variants.
Current production levels and their increase are reviewed
TVS Motor is currently producing around 30,000 units of the iQube per month, while production of the Orbiter is approaching 10,000 units per month, with volumes expected to increase as component availability stabilises. Radhakrishnan said the company is reviewing EV capacity plans for the next financial year and will invest in additional capacity to support higher volumes.
“We are reviewing capacity for next year and we are definitely investing in electric vehicle capacity because it is something that is growing,” he said.
Demand for electric vehicles strengthens despite previous supply challenges
TVS Motor reported 40 per cent year-on-year growth in electric two-wheeler sales in Q3FY26, with volumes crossing 1.06 lakh units even as production was moderated during parts of the quarter due to constraints related to the availability of rare earth magnets.
Radhakrishnan said the company has continued to grow ahead of the industry in the electric vehicle segment. He noted that the availability of magnets has improved and is expected to normalize shortly, allowing for greater supply in the market. “We had some challenges with the availability of magnets, but now it is better. Within a month, we will see the full offering of electric vehicles on the market,” he said.
“As volumes grow, we are improving quarter after quarter,” Radhakrishnan said. It added that the penetration of electric vehicles in the three-wheeler segment has already reached around 32 per cent, and the penetration in all categories of electric vehicles is expected to increase further as supply constraints ease.
With contributions from KIRAN MURALI
