TVS Motor Company expects demand for two- and three-wheelers in India during financial year 2026-27 to broadly track the previous year’s performance, supported by replacement purchases and resilient consumer sentiment.
Demand conditions in India remain resilient, helped by consumption momentum following the Goods and Services Tax changes, a healthy vehicle replacement cycle, stable inflation and adequate reservoir levels, the company said in its FY26 annual report.
However, higher fuel prices, inflationary pressures, tighter liquidity and changing regulations could weigh on near-term growth. The possibility of an El Niño weather event could also affect the monsoon, agricultural output, rural incomes and consumer sentiment, it added.
“We expect to perform in line with market expectations in our primary market, India, barring any weather shocks that may impact the monsoons or any other unforeseen circumstances,” Chairman and Managing Director Sudarshan Venu said in his address to shareholders in the annual report.
“India’s GDP is expected to grow above 6 per cent in FY2026-27, which makes us cautiously optimistic about our performance,” he added.
The company said the two-wheeler segment should benefit from replacement demand and steady consumer sentiment. Growth could, however, moderate depending on inflation, fuel prices and input costs.
Three-wheeler demand is expected to be supported by last-mile connectivity and intra-city transportation, although operators could remain selective about fresh investments.
Overseas business to retain momentum
TVS Motor expects its international business to maintain positive momentum, led by Africa and rising volumes across Asia, Southeast Asia and Latin America during FY27.
Africa remains one of the company's key growth markets, supported by low two-wheeler penetration, urbanisation and demand for affordable personal and commercial mobility.
Nigeria could benefit from higher crude oil prices, as improved export earnings and foreign-exchange inflows support economic activity. South Africa could see a gradual recovery in mobility demand as power-supply disruptions ease and inflation moderates, TVS Motor said.
The company, however, warned that geopolitical tensions, trade restrictions and disruptions to maritime routes could raise freight, insurance and input costs. The conflict in West Asia also poses risks through higher energy prices and currency volatility.
Record performance in FY26
The cautious guidance for FY27 follows TVS Motor’s strongest financial year on record.
The company sold 5.89 million two- and three-wheelers in FY26, compared with 4.74 million units in the previous year.
Its two-wheeler sales increased 23 per cent to 5.67 million units. Three-wheeler volumes rose 62.7 per cent to 220,000 units.
TVS Motor’s operating revenue increased 30 per cent to a record Rs 47,270 crore. Operating earnings before interest, tax, depreciation and amortisation rose 37 per cent to Rs 6,079 crore from Rs 4,450 crore.
Profit before exceptional items and tax stood at Rs 4,945 crore, while profit after tax was Rs 3,615 crore.
Domestic internal-combustion-engine two-wheeler volumes rose 19 per cent to 3.87 million units. This was higher than the broader industry’s growth of around 9 per cent.
Two-wheeler exports increased 30 per cent to 1.43 million units, driven by growth in Africa, Latin America and Asia. Three-wheeler exports grew 50 per cent to 160,000 units.
International operations contributed around a quarter of the company’s revenue during the year.