TVS Motor Revises FY26 Investment Plan Upwards to Rs 2,900 Crore

TVS Motor Company has revised its total investment guidance for FY26 upwards to around Rs 2,900 crore, from an earlier plan of about Rs 2,000 crore, reflecting stronger-than-expected growth momentum and increased strategic investments across businesses, according to KN Radhakrishnan, CEO and director of the company.

Speaking to analysts after the company’s Q3 FY26 earnings, Radhakrishnan said the higher investment outlay is being driven by stepped-up funding towards TVS Credit Services, Norton Motorcycles, electric mobility initiatives, and international expansion, even as the company continues to invest in capacity enhancement to support rising demand.

“Investments for the year will be around Rs 2,900 crore overall,” Radhakrishnan said, adding that the company has accelerated spending in areas that are strategically important for long-term growth.

Higher Investments Across Credit, Premium, and EV Businesses

Radhakrishnan said a sizeable portion of the increased investment outlay during FY26 has been allocated to TVS Credit Services, which continues to grow rapidly alongside the core vehicle business. He noted that the credit arm’s growing book size and profitability justify continued capital allocation.

The company has also stepped up investments in Norton Motorcycles, as it prepares to launch its new super-premium product lineup globally and in India in 2026.

Radhakrishnan said FY26 is a critical year for Norton, requiring upfront investments in product development, technology, and brand building.

In addition, TVS Motor has increased investments in its electric vehicle portfolio, including new product development and capacity ramp-up, as well as in its ION mobility and e-bike initiatives, which form part of its broader electrification strategy.

Capex Guidance Also Nudged Higher

Alongside investments, TVS Motor has marginally revised its FY26 capital expenditure guidance to around Rs 1,700 crore, up from an earlier plan of about Rs 1,600 crore, to support capacity additions amid strong volume growth across segments.

Radhakrishnan said the company has been proactive in adding capacity where required, particularly in scooters and EVs, while maintaining disciplined inventory levels at dealerships.

Despite the higher investment outlay, the company has reiterated confidence in sustaining margin expansion, supported by scale benefits from higher volumes, premiumisation, and ongoing cost-reduction initiatives.

“With top-line growth, we will liberate scale benefits,” Radhakrishnan said, adding that the company remains focused on balancing growth investments with profitability.

The higher investment plan underscores TVS Motor’s confidence in the demand outlook and its intent to accelerate long-term growth across premium motorcycles, electric mobility, financial services, and international markets.