TVS Motor Company is evaluating plans to set up a new manufacturing facility for two- and three-wheelers as it prepares for strong volume growth over the coming years. According to sources familiar with the development, Gujarat, Madhya Pradesh, Karnataka and Tamil Nadu are among the states being considered for the proposed plant.
The move is aligned with the company’s mid-term aspiration to scale annual production to around 10 million units by the end of the decade. TVS Motor has also been ramping up its three-wheeler production and recently signed a memorandum of understanding with Hyundai to manufacture last-mile mobility-focused electric three-wheelers and micro four-wheelers under a strategic partnership.
The new facility is expected to be operational by 2028, with an initial capacity of around 2–2.5 million units and provisions for further expansion. An email query sent to TVS Motor Company seeking comments on the proposed plant and production roadmap did not receive a response.
In 2025, TVS Motor signed an MoU with the Karnataka government to invest ₹2,000 crore over five years, aimed at establishing a global capability centre and expanding production and engineering capabilities. Meanwhile, utilisation levels at its existing manufacturing plants are reportedly running high, prompting the company to consider additional capacity.
Currently, TVS Motor operates three manufacturing plants in India — Hosur (Tamil Nadu), Mysore (Karnataka), and Nalagarh (Himachal Pradesh) — along with an overseas facility in Karawang, Indonesia. Together, these facilities have an estimated total production capacity of approximately 6.4 million units. Over the past few years, the company has steadily increased output to meet growing demand in both domestic and export markets.
TVS Motor surpassed Yamaha in 2025 to become the world’s third-largest two-wheeler manufacturer by sales volume. The company currently holds close to a 20% market share in India’s two-wheeler market, up from around 16% three years ago, reflecting consistent growth and strengthening market position.
The company’s growth strategy is supported by a diversified product portfolio spanning scooters, mid-size and premium motorcycles, electric two-wheelers and international markets. Rising demand in premium motorcycles, scooters and electric two-wheelers has also influenced capacity planning, with TVS Motor investing in regular product updates and production expansion.
Exports continue to be another major growth driver. Through its international presence and ownership of Norton Motorcycles, TVS Motor has strengthened its footprint in developing markets, particularly in Africa, which contributes meaningful volumes to overall output. This expanding global reach has further increased the need for additional manufacturing capacity.
Electric mobility is also shaping the company’s expansion strategy. TVS Motor has emerged as a leading player in India’s electric two-wheeler segment, with annual production nearing 500,000 units, reflecting growing consumer adoption and rising demand.
Sources indicate that the company is targeting production growth of around 15–22% in FY27, translating to approximately 6.8 million to 7.2 million units, compared with an estimated 5.9 million units in FY26. The planned capacity expansion is expected to support this growth trajectory and ensure supply continuity across markets.
Higher production levels in FY27 could also bring TVS Motor closer to Honda Motorcycle and Scooter India in terms of output, potentially intensifying competition for the top position in India’s two-wheeler market. The company has been steadily narrowing the gap with larger competitors through consistent growth across segments.
TVS Motor’s production rose to an estimated 5.7 million units in FY26, marking growth of around 22% compared with the previous financial year. Between April and February of the same year, production reached 5.09 million units, up 20% year-on-year, highlighting sustained demand momentum and expanding manufacturing activity.
