Exclusive: TVS Motor Targets 6.8-7.2 Million 2W Production in FY27; No.2 Position in Sight

TVS Motor Company, which surpassed Yamaha in 2025 to become the world’s third-largest manufacturer by sales volume globally, is now targeting double-digit growth in its two-wheeler production to 6.8-7.2 million units in the financial year 2027 (FY27), according to sources familiar with the company’s production plans.

The target for FY27 would position TVS Motor to challenge Honda Motorcycle and Scooter India for the number two spot in India’s two-wheeler market.

TVS Motor has been steadily ramping up its production over the past few years, reflecting sustained demand for its products across domestic and export markets.

The automaker, which currently has a market share of close to 20% in two-wheelers sold in India, has been closing the gap with Honda and Hero MotoCorp over the period. Three years back, TVS Motor’s market share in the domestic market was around 16%.

TVS Motor’s push towards the number two position is being underpinned by a more diversified and better-balanced growth engine than Honda Motorcycle and Scooter India. 

While Honda remains heavily reliant on its core scooter portfolio, TVS has built momentum across multiple high-growth segments, including premium motorcycles, exports, and electric two-wheelers, where it already holds a leadership position. 

Honda’s core scooter portfolio has been facing heat from TVS Motor while electric two-wheelers have been a non-starter for the Japanese brand for almost a year, with the select success of Shine 125 and a few premium two-wheelers.

TVS Motor’s ability to tap incremental volumes from mopeds, a segment absent in Honda’s portfolio, further adds to scale. 

Combined with faster product refresh cycles and stronger traction in emerging markets globally, this multi-pronged growth strategy gives TVS Motor a clearer pathway to close the gap and potentially surpass Honda in overall volumes.

TVS Motor’s production target for FY27 would place it at a level comparable with that of Honda. Honda is targeting production of about 6.8 million units in the financial year 2027.

If TVS Motor achieves the upper end of its planned production range, it could exceed Honda’s output, strengthening its position in the market and intensifying the competition for the number one ranking. 

The development would highlight a shift in the competitive landscape, where the fight for the top spot is no longer limited to erstwhile partners – Hero MotoCorp and Honda. 

However, sources noted that these production targets were made assuming normal business conditions, up until the start of the war in West Asia. If the war continues for a longer period, the actual production numbers may change with potential disruption in supply chains and demand.

The evolving competitive environment is being shaped by growth in electric mobility, scooters, mid-size and premium motorcycles, and exports, all of which have become key battlegrounds for OEMs. 

A key driver of TVS Motor’s growth has been the ongoing trend towards premiumisation and scooters in the Indian market. Demand growth has increasingly shifted toward motorcycles in the mid-size segment 150cc and above, where the company is strengthening its portfolio.

Exports remain another important pillar of the company’s growth strategy. TVS Motor has built a significant presence across developing markets, particularly in Africa, which contributes meaningful scale to its volumes.

The company has also strengthened its position in the electric two-wheeler segment, where rising consumer adoption is driving steady growth in production volumes. 

TVS Motor currently holds a leadership position in India’s electric two-wheeler market, reflecting early investments in product development and manufacturing capability.

Growing demand for electric vehicles has prompted the company to review further expansion of its electric two-wheeler manufacturing capacity. TVS Motor’s annual production in this space is approaching an annual output of close to 500,000 units. 

For the current financial year 2026 (FY26), sources said TVS Motor’s two-wheeler production is estimated at around 5.7 million units, representing growth of about 22% compared with the previous financial year 2025. 

An email query sent to TVS Motor did not elicit any response.

Between April and February of FY26, the company produced 5.09 million units, up 20% from the year-ago period. Its production was at 4.65 million units in the financial year 2025, an increase of 13% over the financial year 2024.