TVS Motor Company is gearing up for a massive production push, with plans to ramp up its manufacturing capacity by 1.5 million units over the coming year. This move will see their total annual installed capacity jump from an estimated 6.8 million to roughly 8.3 million units. This is welcome news considering the huge delays that customers especially of the TVS RTX are facing.
Meeting Rising Demand Across the Board
During a recent post-results interaction, CEO KN Radhakrishnan explained that this expansion is essential because demand is looking incredibly strong. The extra capacity is set to support several key areas of the business, including:
- Scooters and Premium Motorcycles: Ensuring plenty of stock for popular petrol-powered models.
- Electric Vehicles (EVs): Supporting the brand’s rapid transition to electric mobility.
- Exports and Three-Wheelers: Strengthening TVS’s footprint in international markets and the commercial sector.
The Electric Vehicle Push
TVS is already making serious headway in the EV space. Having sold over 5.9 million units in total during FY26, the company is now pushing its monthly EV output from 40,000 units toward a near-term goal of 50,000 units per month.
Global Ambitions with Norton and New Facilities
The famous Hosur plant is also set for a starring role on the world stage. TVS confirmed that this facility will be pivotal in manufacturing future Norton Motorcycles for global markets.
Furthermore, the brand is reportedly looking for a home for a brand-new two- and three-wheeler manufacturing plant. While nothing is set in stone, they are currently evaluating potential sites in Gujarat, Madhya Pradesh, Karnataka, and Tamil Nadu.
Investing in the Future
To make all of this happen, TVS is putting its money where its mouth is. For FY27, the company expects a capital expenditure of approximately Rs 3,500 crore. This significant investment will be funnelled into product development, R&D, and the physical expansion of their manufacturing capabilities.
