TVS Motor Sees FY27 2W Industry Volume Growing in Double Digits

TVS Motor expects India's two-wheeler industry to post double-digit volume growth in the current financial year, supported by healthy consumer demand, rising electric vehicle adoption and improving affordability, according to Managing Director KN Radhakrishnan.

The company also expects the second quarter to be stronger than the first, with domestic and export markets maintaining their growth momentum. "When we look at Q2, the industry is likely to do very well. And I am very sure it will maintain the same momentum. A double-digit growth is the minimum we are expecting in the market," Radhakrishnan said during the company's earnings call.

In FY26, India’s two-wheeler industry volumes rose 26.4% year-on-year to 21.71 million units. In the April-June quarter of this financial year, domestic volume rose 20.3% year-on-year to 5.63 million units.

He said the outlook remained positive as several structural factors continued to support demand. "Very healthy demand and EVs could be similar to the growth we have witnessed in Q1. Overall, the outlook remains very, very strong," he said.

Radhakrishnan said domestic demand would be supported by GST rationalisation, income tax relief measures and affordability, while exports were also expected to remain robust. "We are pretty confident that you will see July, August, September, same momentum, a slightly better momentum than Q1 to continue.”

He added that replacement demand, affordability and increasing acceptance of electric vehicles would continue to support industry growth. "Overall, you know, there are many, many factors- structural demand drivers, replacement demand, affordability, continued EV adoption; all these are going to be supportive. And I am pretty confident that TVS will do much better than the industry growth," he said.

On the outlook for the full financial year, Radhakrishnan said the company expected demand to remain healthy despite some uncertainty around seasonal factors and geopolitical developments. "In terms of the overall year, I think this year is going to be extremely good... So overall, as a year, we should estimate an industry growth of double-digit."

He noted that electric vehicle demand would continue to strengthen. "Definitely, growth momentum will continue... just the 10.6% of June itself is a good indication that consumers are considering EVs in a big way," Radhakrishnan said.