TVS Motor Company will invest around ₹3,500 crore in FY27 towards capacity expansion, product development and R&D as the two- and three-wheeler maker prepares for its next growth phase across electric mobility, premium motorcycles and overseas markets.

Speaking to analysts during the company’s post Q4 FY26 earnings call on Wednesday, TVS Motor Company Director & CEO K. N. Radhakrishnan stated that the company plans to add another 1.5 million units of annual production capacity over the next 12 months amid sustained demand across domestic and export markets.

“Immediately, we are looking at increasing the capacity by another 1.5 million because the demand is good and we have to add significant capacity in the next 12 months,” Radhakrishnan said.

Record earnings and EV momentum strengthen growth outlook

The Chennai-based automaker reported a 31% year-on-year rise in standalone net profit to ₹997.7 crore for the March quarter, while revenue from operations climbed 34% to a record ₹12,807.63 crore.

Quarterly sales rose 28% to 15.6 lakh units, led by strong growth in scooters, electric vehicles and three-wheelers. EV sales surged 51% to 1.15 lakh units during the quarter, while annual EV volumes grew 33% to 3.71 lakh units in FY26.

For the full financial year, TVS Motor posted its highest-ever revenue of ₹47,270 crore, with total sales crossing 58.89 lakh units. The company stated that it has sold more than 9 lakh EV customers globally.

Commodity inflation and supply bottlenecks remain key concerns

Despite the strong performance, the company flagged risks emerging from the ongoing conflict in West Asia, particularly around commodity inflation and logistics.

“There are some headwinds in terms of the ongoing West Asia conflict. There are challenges in terms of commodity prices, steel, aluminium, crude oil derivatives, and there are pressures on input costs, also some supply chain disruptions,” Radhakrishnan said.

The company also faced supply-chain disruptions in April due to labour shortages at supplier facilities, gas availability constraints and delays in raw material deliveries, though management said the situation has started improving.

“This month is going to be better and we are confident that in Q1 we will post a very good growth, better than the industry,” he added.

TVS Motor said it has intensified cost-reduction initiatives, improved product mix and implemented selective price hikes to offset inflationary pressures. “We were able to offset about 35% of this through price increases,” Radhakrishnan noted.

Exports, Norton and EV scale-up to anchor FY27 strategy

The company expects exports and electric mobility to remain key growth drivers in FY27, supported by demand from Africa, Asia and Latin America despite shipping and logistics disruptions linked to geopolitical tensions.

“We will soon move to 50,000 EV two- and three-wheelers per month,” Radhakrishnan said, up from around 40,000 units currently. He added that products emerging from TVS Motor’s Hosur facility and Norton Motorcycles’ Solihull plant in the UK would help shape the company’s next phase of expansion.