TVS Motor Company, one of the frontrunners in India’s electric two-wheeler market, is reviewing a fresh expansion of its electric two-wheeler manufacturing capacity. Rising demand has pushed the company closer to an annual EV output of nearly 5 lakh units, according to a senior company official. Speaking to analysts after the company’s Q3 FY26 earnings call, KN Radhakrishnan, CEO and director of TVS Motor Company, said the capacity review is being driven by strong demand for the company’s EV portfolio and easing supply-side constraints.
- TVS has grown more than the EV industry in the past quarter
- Its EV sales stood at 1.06 lakh units in Q3 FY26
- Supply constraints have eased, prompting more stable production volumes
TVS iQube is India’s bestselling electric scooter
Newly launched Orbiter seeing steady demand too
Radhakrishnan said demand for both the iQube and the newly launched Orbiter electric scooters has been “encouraging, with the two products addressing different customer segments rather than cannibalising each other”.
“It is too early to give actual usage trends, but the demand is excellent in the markets where we have launched,” he said, referring to Orbiter. “The good news is iQube is also growing, and Orbiter is also growing.”
The Orbiter is positioned as a differentiated offering for customers seeking a lower entry point into EV ownership, with a focus on maximising range, whereas the iQube continues to form the bread and butter of TVS’s EV sales with its multiple variants.
Current production levels and ramp-up under review
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 rise 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 EV capacity because this is something which is growing,” he said.
EV demand strengthens despite earlier supply challenges
TVS Motor reported 40 percent year-on-year growth in electric two-wheeler sales in Q3 FY26, with volumes crossing 1.06 lakh units, even as production was moderated during parts of the quarter due to constraints related to rare-earth magnet availability.
Radhakrishnan said the company has continued to grow ahead of the industry in the EV segment. He noted that magnet availability has improved and is expected to normalise shortly, enabling higher supplies into the market. “We had some challenges with magnet availability, but now it is better. By another month, you will see full supplies of EVs in the market,” he said.
“As volumes are growing, we are becoming better quarter after quarter,” Radhakrishnan said. He added that EV penetration in the three-wheeler segment has already reached around 32 percent, and penetration across EV categories is expected to rise further as supply constraints ease.
With inputs from KIRAN MURALI
Ved Janve
Vishal Venugopal
Dinshaw Magol
