TVS Motor Accelerates Electric Scooter Production
TVS Motor Company, a leading electric two-wheeler manufacturer, is significantly increasing its monthly production capacity for electric vehicles (EVs). The company aims to boost output from its current 40,000–45,000 units per month to over 50,000 units within the next three months, with further expansion anticipated by the fourth quarter.
Gaurav Gupta, head of TVS Motor’s two-wheeler business in India, confirmed the expansion plans, noting that supplier capabilities will play a crucial role in achieving these targets. This strategic move comes as the Indian electric two-wheeler market experiences robust growth.
Surge in EV Registrations and Market Penetration
The decision to ramp up production is supported by strong sales figures. In August, TVS Motor recorded 48,938 electric scooter registrations, marking an impressive 90% increase compared to 25,646 units registered during the same month last year. For context, Bajaj Auto, the second-largest electric two-wheeler maker, registered 41,114 EVs in August.
Electric two-wheeler penetration in the Indian market has seen a sharp rise, now standing at approximately 10% across the industry, up from about 6.7% a year ago. Over the past three months, EV penetration in the two-wheeler segment has consistently remained between 10.5% and 11%.
Factors Driving EV Demand
Gupta highlighted several factors contributing to the increased adoption of electric vehicles. He stated, “We are seeing a lot of momentum around the EV penetration. The Middle East crisis did drive people to look at EVs with a new lens because of concerns around fuel price hikes.” This indicates a growing consumer sensitivity to fuel costs, pushing them towards electric alternatives.
Beyond fuel price concerns, the broader two-wheeler market is also experiencing a supportive growth trend. Industry volumes for both internal combustion engine (ICE) and EV two-wheelers grew by 17.6% year-to-date between April and August. While ICE vehicles grew by 13.6%, EVs saw a much stronger surge of 72.4% during the same period.
Furthermore, a trend towards premiumization is evident within the two-wheeler segment, with consumers increasingly preferring top-end variants. TVS Motor currently holds a combined market share of approximately 19.9% across its ICE and EV offerings.