TVS Motor Company reviews electric two-wheeler manufacturing capacity

TVS Motor Company, one of the leading players in India’s electric two-wheeler market, is assessing a fresh expansion of its electric two-wheeler manufacturing capacity as demand accelerates. Rising volumes have brought the company close to an annual EV output of nearly five 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 review is being driven by strong customer traction across its EV portfolio and improving supply-side conditions.
TVS Motor Company EV sales outperform industry trends
TVS Motor Company continued to grow faster than the broader EV industry during the past quarter, supported by stable demand and improving production visibility. Electric two-wheeler sales reached 1.06 lakh units in Q3 FY26, reflecting a 40 percent year-on-year increase despite earlier supply limitations.
Key developments during the quarter included:

• EV sales of 1.06 lakh units in Q3 FY26

• Production stability improving as supply constraints ease

• TVS iQube retaining its position as India’s bestselling electric scooter

• Newly launched TVS Orbiter witnessing steady market acceptance

Radhakrishnan said demand for both the iQube and the newly introduced 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.”
Product positioning supports electric two-wheeler manufacturing capacity plans
The Orbiter has been positioned as a differentiated offering for customers seeking a lower entry point into electric mobility, with an emphasis on maximising range. In contrast, the iQube continues to remain the backbone of TVS Motor Company’s EV volumes, supported by multiple variants catering to diverse urban and suburban use cases.
This clear product separation has helped the company scale volumes without internal competition, strengthening the business case for expanding electric two-wheeler manufacturing capacity.
Production levels and future EV capacity expansion
TVS Motor Company is currently producing around 30,000 units of the iQube per month, while Orbiter production is nearing 10,000 units per month. These volumes are expected to increase further as component availability continues to stabilise.
Radhakrishnan confirmed that the company is actively reviewing EV capacity requirements for the next financial year and plans to invest in additional manufacturing capacity to support higher demand. “We are reviewing capacity for next year, and we are definitely investing in EV capacity because this is something which is growing,” he said.
Supply constraints ease as EV demand strengthens
During parts of Q3 FY26, production was moderated due to challenges linked to rare-earth magnet availability. However, TVS Motor Company continued to grow ahead of the industry in the EV segment, supported by disciplined supply management.
Radhakrishnan noted that magnet availability has improved and is expected to normalise shortly, allowing higher vehicle 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 increase, operational efficiency has improved quarter after quarter. He added that EV penetration in the three-wheeler segment has already reached around 32 percent, and penetration across other EV categories is expected to rise further as supply constraints continue to ease.