TVS Motor Company is expanding the use of artificial intelligence across product development, supply-chain operations and customer service as it steps up investment in research and development.
The two-wheeler maker’s R&D expenditure rose to Rs 1,254 crore in financial year 2025-26, up 22% from Rs 1,025 crore in the previous year. The investment has nearly doubled from Rs 645 crore in FY24, reflecting the company’s focus on electric vehicles, connected technologies, digital engineering and premium motorcycles.
TVS Motor has more than 2,000 engineers, manufacturing experts and information technology specialists supporting its R&D operations. The teams are working on existing vehicle platforms, new products, digital tools and products for international markets.
“Generative AI is a once-in-a-lifetime opportunity for those willing to build with it,” Chairman and Managing Director Sudarshan Venu said in his address to shareholders in the FY26 annual report. “Its implications for manufacturing, product development and customer experience are only beginning to unfold.”
Venu said the company was embedding AI into the way it designs products, optimises its supply chain and serves customers across markets. TVS Motor is also developing next-generation engines.
“We are investing Rs 1,254 crore annually in R&D, with 2,000+ engineers working at the intersection of electrification, connected platforms and AI-driven design,” he said.
AI-defined vehicles
TVS Motor is developing software-defined and AI-defined vehicle capabilities for both internal-combustion-engine and electric-vehicle platforms.
The company has set up a dedicated artificial intelligence and machine-learning Centre of Excellence. It plans to use these technologies to develop vehicles that can adapt to rider behaviour, terrain and traffic conditions.
It is also exploring AI-based interfaces using voice, gestures, touch, haptic feedback and sensors. These systems will be supported by onboard computing, advanced graphics and scalable human-machine interfaces.
TVS Motor said such technologies could create more intelligent, personalised and adaptive mobility experiences.
The company is also integrating infotainment, connectivity, telematics, instrument clusters, body controls and smart-device interfaces through a common digital architecture.
These systems are supported by the company’s in-house TVSM.OS platform, over-the-air software update capability and advanced data analytics.
The technology could help TVS Motor continuously improve its products after sale, while creating new opportunities in connected services, customer engagement and data-led services.
Global engineering network
TVS Motor is also expanding its international design and engineering network to support its technology strategy.
The acquisition of Engines Engineering helped establish a global design and engineering centre in Bologna, Italy. The centre is working on digital simulation, rapid prototyping, modular vehicle platforms and premium motorcycles.
The company also has design and innovation capabilities in Dubai, while Norton Motorcycles supports luxury and high-performance motorcycle engineering in the UK.
TVS Motor strengthened its electric-vehicle capabilities by acquiring assets, intellectual property and talent from Singapore-based Ion Mobility.
The increase in technology investment comes after TVS Motor recorded its strongest year in FY26.
The company sold 5.89 million two- and three-wheelers during the year. Revenue stood at Rs 47,270 crore, while earnings before interest, tax, depreciation and amortisation rose to Rs 6,079 crore.
Venu said the company had strengthened its position as the world’s third-largest two-wheeler manufacturer.