With a new plant coming up at Dharwad in Karnataka, the startup plans to expand powertrain supplies to commercial vehicles for heavy applications.
14 Feb 2026 | 165 Views | By Kiran Murali & Mukul Yudhveer Singh
Electric vehicle powertrain maker Tsuyo Manufacturing plans to raise up to $20 million (approximately Rs 180 crore) in fresh funding over the next year and a half to expand capacity and support its growth into larger vehicle segments, according to senior company officials.
“We will be raising funds very ...
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Electric vehicle powertrain maker Tsuyo Manufacturing plans to raise up to $20 million (approximately Rs 180 crore) in fresh funding over the next year and a half to expand capacity and support its growth into larger vehicle segments, according to senior company officials.
“We will be raising funds very soon, within another 12 to 18 months. That would be around $18–20 million. We are already in the process of getting started,” said Tsuyo’s founder and Chief Executive Officer Vijay Kumar. He noted that the funds would be used primarily for capacity augmentation and new product lines at its upcoming facility in Karnataka.
The New Delhi-based startup designs and manufactures integrated powertrain systems for EVs, which include motors, controllers and transmissions. It also works on advanced technologies such as rare-earth-free motors and full EV powertrains for commercial and industrial applications.
The company, which has a partnership with China’s LVKON Transmission, provides electric powertrain solutions for major three-wheeler (both L3 and L5 segments) OEMs and is working with major commercial vehicle makers. Its portfolio includes electric motors, controllers and integrated powertrain systems ranging from 0.5 kW to 350 kW.
Tsuyo operates two manufacturing facilities in Greater Noida and has sold more than 200,000 motors so far. It supplies integrated motor and controller systems and does not sell standalone motors, positioning itself as a full powertrain solutions provider. It recently closed a pre-Series A funding round, in which $4.5 million was raised, led by Avaana Capital.
The company has acquired 20 acres of land in Dharwad, Karnataka, where it is setting up its third manufacturing facility as part of its capacity expansion plans. The plant will start this year with motors of rated power up to 350 kW under the first phase. In the second phase, the company plans to expand to motors in the around 600-volt range for heavier applications such as buses, trucks and rail-related projects.
The facility will also include a dedicated 2–2.5-acre testing track for trucks and buses, aimed at reducing validation timelines for OEM customers. The Dharwad facility will also house production of automatic transmission systems, including larger truck transmissions, alongside high-power electric motors. The initial investment for the project is estimated at around Rs 50 crore, with further expansion to be supported through the proposed fundraise, as the company moves deeper into medium and heavy commercial vehicle segments.
The company has a partnership with China’s LVKON Transmission Technology under a joint engineering model to develop higher-power motors and transmission systems. Tsuyo said it is leveraging this partnership to accelerate development in larger commercial vehicle categories while localising manufacturing in India over time.
It is also working on retrofit powertrain kits for existing three-wheelers, light commercial vehicles and mining trucks, for the conversion of internal combustion vehicles to electric.
Tsuyo reported revenue of Rs 32 crore in the last financial year and said it is targeting around Rs 100 crore in the financial year 2027. Over the longer term, it has outlined plans to scale revenues significantly as it prepares for a potential public listing. The company is targeting to scale its revenue to Rs 300 crore in the next 2-3 years ahead of an expected IPO.
Kumar said Tsuyo does not plan to enter the two-wheeler or passenger vehicle segments in the near term. It views two-wheelers as a highly price-sensitive, commodity-driven market and passenger vehicles as capital-intensive and dominated by large incumbents. Instead, Tsuyo said it will continue to focus on commercial and industrial mobility segments, where engineering complexity and system integration offer stronger differentiation.
Tsuyo has already begun supplying to markets such as Sri Lanka, Bangladesh and the Philippines, while indirect exports to the US and Germany are taking place through OEMs. Exports currently account for around 1.5–2% of Tsuyo’s revenue, but the company expects that share to rise sharply over the next two years. Kumar said the export business is very promising and could reach 8–10% of total revenue within two years.
On Saturday, Tsuyo unveiled its new product lineup that includes the Gen 3.0 IPM motor and controller architecture, as well as an AMT solution for electric three-wheelers to enhance range and load handling. The company has also introduced a patented magnet-less SynRM motor with a novel rotor design to reduce dependence on rare-earth materials and a flat tube axle with a common gear interface to improve load capacity and simplify parts management for L3 and L5 vehicles.