TVS Evaluating New Manufacturing Plant In India, Increase Production Capacity To 8.3 Million Units Annually

TVS Motor Company has announced its plans to expand its production capacity by 1.5 million units over the next 12 months. The manufacturer confirmed the development during the recent post-results earnings call, and said it plans to take the total installed capacity to 8.3 million units annually, up from the current 6.8 million units. TVS is evaluating a new manufacturing plant for the production expansion and is considering a new two- and three-wheeler plant in Gujarat, Madhya Pradesh, Karnataka or Tamil Nadu. TVS has earmarked capex of around ₹3,500 crore towards product development, manufacturing expansion, and R&D in FY2027.

Speaking during the earnings call, KN Radhakrishnan, CEO - TVS Motor, said, ““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, we have to add significant capacity in the next 12 months.”

He further added that the expansion will support the rising demand across scooters, premium motorcycles, electric vehicles, exports, three-wheelers. TVS has been witnessing a rampant jump in demand across segments. The company sold over 5.9 million two-wheelers in FY2026, and is backing its continued growth with the fast-growth EV segments and mass-market offerings. The company’s EV production stands at about 40,000 units per month, and it’s looking to expand the same to 50,000 per month in the near future, to address growing demand.

The company sold over 5.9 million units in FY26 and is also ramping up EV production with monthly output rising to around 40,000 units. It plans to increase EV production further to 50,000 units per month in the near term.

TVS also iterated that the current Hosur facility will play a crucial role in manufacturing Norton motorcycles for the world. The company will be producing the 1,200 cc, 72-degree, liquid-cooled V4 engine powering the upcoming Norton Manx superbike in India, which will be exported to the UK for assembly. Moreover, the Norton Atlas mid-size adventure motorcycle will be produced in India as well, for domestic and export markets.

Not just TVS and Norton, the Hosur plant is also crucial for the manufacturer’s association with BMW Motorrad, with the F 450 GS twin-cylinder adventure motorcycle produced in India for the globe at the plant.