TVS Motor Looks at EV Capacity Expansion as Output Inches Towards 5 Lakh Units Annually

TVS Motor Company is reviewing a fresh expansion of its electric two-wheeler manufacturing capacity as rising demand pushes the company closer to an annual EV output of nearly 5 lakh units, according to a senior company official.

Speaking to analysts after the company’s Q3 FY26 earnings, KN Radhakrishnan, CEO and director of TVS Motor Company, said the capacity review is being driven by strong demand for the company’s EV portfolio and easing supply-side constraints.

Orbiter and iQube drive volume expansion

Radhakrishnan said demand for both the iQube and the newly launched 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.”

The Orbiter is positioned as a differentiated offering for customers seeking a lower-range EV, while iQube continues to anchor TVS Motor’s presence in higher-range electric scooters.

Current production levels and ramp-up under review

TVS Motor is currently producing around 30,000 units of iQube per month, while Orbiter production is approaching 10,000 units per month, with volumes expected to rise as component availability stabilises.

Radhakrishnan said the company is reviewing EV capacity plans for the next financial year and will invest in additional capacity to support higher volumes.

“We are reviewing capacity for next year, and we are definitely investing in EV capacity because this is something which is growing,” he said.

EV demand strengthens despite earlier supply challenges

TVS Motor reported 40% year-on-year growth in electric two-wheeler sales in Q3 FY26, with volumes crossing 1.06 lakh units, even as production was moderated during parts of the quarter due to constraints related to rare-earth magnet availability.

“EV two-wheeler sales grew by 40%, crossing 1.06 lakh units,” Radhakrishnan said, adding that the company has continued to grow ahead of the industry in the EV segment.

He noted that magnet availability has improved and is expected to normalise shortly, enabling higher supplies into the market.

“We had some challenges on magnet availability, but now it is better. By another month, you will see full supplies of EVs into the market,” he said.

Radhakrishnan said the EV business is steadily moving towards EBITDA breakeven as volumes scale up, with performance improving quarter after quarter.

“As volumes are growing, we are becoming better quarter after quarter,” he said.

He added that EV penetration in the three-wheeler segment has already reached around 32%, and penetration across EV categories is expected to rise further as supply constraints ease.

Outlook constructive

With EV capacity expansion under review, supply constraints easing, and a broader EV portfolio led by iQube and Orbiter, TVS Motor expects EV demand momentum to sustain into Q4 FY26 and beyond.