On Wednesday, May 13, 2026, TVS Motor Company reported its highest-ever annual performance for FY26 and announced an aggressive manufacturing scale-up to cement its position as a global automotive leader.
Under the leadership of CEO KN Radhakrishnan, the company is preparing to add 1.5 million units of annual capacity within the next 12 months, aiming for a total installed capacity of 8.3 million units by mid-2027.
FY26: A Record-Breaking Year
TVS Motor delivered a clean sweep of record financials and volumes for the fiscal year ending March 31, 2026.
- Sales Volume: 58.9 lakh units (up 24% from 47.4 lakh in FY25).
- Revenue: ₹47,270 crore (up 30% YoY).
- Operating EBITDA: ₹6,079 crore (up 37% YoY), with margins expanding to 12.9%.
- EV Momentum: Electric vehicle sales reached 3.71 lakh units for the year, with Q4 alone seeing 51% growth (1.15 lakh units).
Manufacturing Expansion: The “New Plant” Strategy
With existing plants in Hosur, Mysore, and Nalagarh running at high utilization levels, TVS is scouting for a new site to support future growth.
- Potential Locations: The company is evaluating Gujarat, Madhya Pradesh, Karnataka, and Tamil Nadu for a new facility capable of producing both two- and three-wheelers.
- Investment Roadmap: TVS has earmarked a total CapEx of ₹3,500 crore for FY27. Approximately ₹1,000 crore of this is dedicated specifically to the 1.5-million-unit capacity addition.
- Future-Proofing: Beyond FY27, the management is already reviewing capacity requirements for FY28 and FY29 to ensure they stay ahead of the projected 8–9% industry CAGR.
EV & Premiumization: Norton and Beyond
TVS is leveraging its engineering depth to pivot toward higher-margin segments.
- EV Production Ramp: Monthly EV production has jumped from 30,000 to 40,000 units, with a target of 50,000 units per month soon.
- Norton Motorcycles: TVS will utilize its Hosur plant as a global manufacturing hub for the premium Norton brand. With major R&D spending for Norton largely completed, the company expects lower relative investment requirements in this sub-segment for FY27.
- Innovative Financing: The company has introduced Battery-as-a-Service (BaaS) across its EV portfolio, allowing customers to subscribe to battery usage rather than paying the full upfront cost.
- Strategic Collaboration: Work is underway on a joint development agreement with Hyundai Motor Company to co-develop an electric three-wheeler platform.
“One thing we are very clear about is that we want to be ahead of the industry growth. We will make sure that capacity will not be a constraint, and we will be investing behind it.” — KN Radhakrishnan, CEO, TVS Motor Company.
