TVS to Ramp Up Manufacturing Capacity by 1.5 Million Units; FY27 Capex at Rs 3,500 Crore

TVS Motor Company plans to increase its manufacturing capacity by 1.5 million units over the next 12 months as it prepares for higher demand across scooters, premium motorcycles, three-wheelers, electric vehicles and export markets.

“Immediately, we are looking at increasing the capacity by another 1.5 million to go to somewhere around 8.3 million. Because the demand is good and we have to add significant capacity in the next 12 months,” Chief Executive Officer KN Radhakrishnan said.

Autocar Professional had earlier reported that TVS is evaluating plans to set up a new manufacturing facility for both two- and three-wheelers. Gujarat, Madhya Pradesh, Karnataka and Tamil Nadu are among the states under consideration for the new plant.

Its existing manufacturing network includes plants in Hosur, Mysore and Nalagarh in India, along with an overseas facility in Karawang, Indonesia. Industry sources estimate the company’s current installed capacity at around 6.8 million units annually.

The automaker, which crossed 5.9 million units in sales during FY26, has steadily expanded output over the past few years as domestic demand recovered and exports strengthened across developing markets.

Radhakrishnan said the company intends to stay ahead of industry growth and will continue investing to avoid capacity constraints.

“One thing we are very clear about is that we want to be ahead of the industry growth. And for that, we will make sure that capacity will not be a constraint and we will be investing behind it,” he said.

The management noted that work on the expansion had already started in the previous financial year and that capacity planning would continue beyond FY27.

“Work has already started in the last quarter of the previous financial year. This financial year is going to be very important. Quarter after quarter, we are reviewing,” Radhakrishnan said.

“And possibly for FY28 and FY29, we are also thinking about what kind of capacity additions we need to add,” he added.

The company has also been scaling up electric vehicle production as adoption rises in India and overseas markets. Radhakrishnan said monthly EV production had increased from around 30,000-32,000 units last year to about 40,000 units currently.

“We will soon move to 50,000 per month,” he said.

TVS Motor also said it would leverage its Hosur plant for the production of Norton motorcycles for global markets.

“The other models are going to be made here. And we will also look at what type of models are in Solihull, what type of models are in India. But we are leveraging India, especially the Hosur plant, in a big way,” Radhakrishnan said.

Total capital expenditure for FY27 is expected to be around Rs 3,500 crore, driven by investments in product development, manufacturing expansion and research capabilities.

Radhakrishnan also noted that investments in FY27 would be lower than the Rs 2,400 crore invested last year, largely because major spending on Norton Motorcycles had already been undertaken.

“Next year, the investments will be much lower. It will be maybe another Rs 500-600 crore lower than this Rs 2,400 crore,” he said.