TVS Motor to Invest Rs 3,500 Crore in FY27 Expansion

TVS Motor Company has announced a major investment plan for FY27 to increase production capacity & develop new products. The company will invest nearly Rs. 3,500 crore across manufacturing, research, electric vehicles & premium motorcycles. Moreover, TVS Motor aims to add 1.5 million units of annual production capacity within the next 12 months. The company also expects TVS scooters, TVS electric vehicles, and exports to remain major contributors during FY27.

TVS Motor Reports Profit Growth In FY26 Quarter

TVS Motor also reported a strong financial performance for the quarter ended March 2026. The company posted a 19 per cent increase in consolidated net profit during the quarter.

Consolidated net profit reached Rs. 771.52 crore compared with Rs. 648.16 crore during the same period last year. In addition, TVS Motor confirmed continued investments in technology, software platforms, and connected vehicle development despite global uncertainties.

TVS Motor Plans Capacity Expansion Across Plants

TVS Motor said demand remained healthy across domestic and export markets during FY26. Therefore, the company plans to increase annual production capacity to nearly 8.3 million units soon.

K N Radhakrishnan, Director and Chief Executive Officer, TVS Motor Company, said, “Immediately, we are looking at increasing the capacity by another 1.5 million to go to somewhere around 8.3 million because the demand is good and we have to add significant capacity in the next 12 months.”

The company currently operates manufacturing plants in Hosur, Mysore, Nalagarh, and Indonesia. In addition, industry estimates suggest TVS Motor currently holds around 6.8 million units of annual production capacity.

TVS Motor also crossed total sales of 5.9 million units during FY26. Hence, the company expects continued demand support from both Indian and overseas markets.

Scooters, EVs and Premium Bikes Remain Important

TVS Motor stated that scooters and electric vehicles will continue driving volumes during FY27. Moreover, premium motorcycles are also witnessing steady demand growth in several markets.

The company said monthly EV production increased from nearly 30,000-32,000 units last year to around 40,000 units currently. In addition, TVS Motor plans to raise EV production further during the coming months.

“We will soon move to 50,000 per month,” said Radhakrishnan.

The company also confirmed continued investments under the Norton Motorcycles brand. Some Norton motorcycles are expected to be manufactured in India, particularly at the Hosur facility.

Therefore, TVS Motor aims to strengthen its presence in premium motorcycle categories alongside electric mobility expansion.

Commodity Costs and Supply Issues Remain Concerns

TVS Motor said rising commodity prices and supply chain disruptions remain concerns for the industry currently. According to the company, inflation linked to steel, aluminium, gases, and crude oil derivatives remains between 3-5 per cent of revenue.

Radhakrishnan said the company partially managed these pressures through selective price increases and improved product mix. “We were able to offset about 35 per cent of this through price increases.”

The company also pointed towards labour shortages among suppliers and raw material delays during April. However, management stated the overall situation has gradually started improving recently.

“We are very confident about the demand. The uncertainty is more on raw material availability and logistics,” he said.

Export Markets Continue Supporting Growth Plans

TVS Motor said Africa, Asia, and Latin America remained important export markets for the company. However, management admitted logistics delays continue affecting delivery timelines in some regions.

“There are some challenges, especially in the lead time for delivery because of logistics issues, but as long as the demand is very good, we are confident,” Radhakrishnan said.

The company added that geopolitical tensions continue impacting shipping schedules and supply movement globally. However, TVS Motor believes export demand remains healthy despite operational challenges.

In addition, the company plans to continue investments in international business expansion during FY27.

Before you go, check out the Smart Electric Scooter Buying Guide: 5 Important Things Indian Riders Must Check.