TVS Motor doubles down on global expansion, EVs and premium motorcycles

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TVS global expansion and EVs

Highlights

TVS Motor strengthened its position to become a global top-three two-wheeler manufacturer in 2025, with sales of 5.5 million units and $6 billion in consolidated revenue.
The company's domestic EV share is expected to rise from 2.6 percent in 2021 to 25 percent in 2026, and it has taken the number-one spot from Ola Electric.
After investing £200 million in premium brand Norton, four new models will launch in the UK, France, Italy, Germany, Spain, India and the U.S. by next March.

This article was translated from the original. Read the original version by our correspondent here.

Production, investment and global strategy

According to Forbes India, 37-year-old Chairman and Managing Director Sudarshan Venu is working on a plan to transform TVS Motor into a more global two-wheeler company, with EVs, premium products and new markets as its key pillars. Based on sales of 5.5 million units in calendar 2025, the company has strengthened its claim to become the world's third-largest two-wheeler manufacturer, overtaking Japan's Yamaha Motor, with only Honda Motor and Hero MotoCorp ahead of it.

For the year ended March 31, the company reported consolidated revenue of $6 billion and a market capitalization of $18 billion. Sudarshan Venu says that, in line with the roadmap prepared in 2020, the company is focusing on electric two-wheelers, global expansion, its premium portfolio and innovation, while Chairman Emeritus Venu Srinivasan continues to provide strategic guidance.

TVS Motor operates three manufacturing facilities in India and one each in Indonesia and the UK. The company says it has a 19 percent share of India's domestic two-wheeler market, while Autocar India puts its global volume share at 7 percent; of total sales of 5.9 million units in the year ended March 31, India accounted for nearly three-quarters, while exports rose 31 percent to 1.4 million units.

The electric two-wheeler business has been among the fastest-growing segments over the past five years. The portfolio, which began with iQube, has now expanded to include Orbiter and TVS X, lifting the company's domestic EV share from 2.6 percent in FY2021 to 25 percent in FY2026; according to government data, it took the number-one spot from Ola Electric last year.

The company is also expanding in premium and super-premium motorcycles. Following TVS Apache and TVS Ronin, the focus is now on Norton, which the company acquired in 2020 for £16 million and into whose revival it has invested £200 million; four new models, including the Norton Manx R, are set to go on sale later this year and launch in the UK, France, Italy, Germany, Spain, India and the U.S. by next March.

Market opportunities, competition and risks

India remains the world's largest two-wheeler market, with 21.4 million units sold in FY2026, according to the Federation of Automobile Dealers Associations. A Kearney report expects the market to reach 27.6 million units by 2030, driven by low household penetration, the growing gig economy and urbanization.

The company's financial progress also reflects this expansion. Over the five years from FY2021, consolidated revenue and net profit grew at compound annual rates of 24 percent and 39 percent, respectively, while the stock has risen fivefold since 2021 and 25 percent over the past year; in May, Goldman Sachs' Indian unit upgraded the stock from 'neutral' to 'buy', citing better volume visibility from upcoming premium products.

However, competition is intense in both the EV and premium segments. In India, Ola, Ather Energy, Bajaj Auto, Hero MotoCorp and foreign companies such as VinFast and Suzuki Motor are expanding their presence, while in the global super-premium market, Norton faces established brands including Ducati, Harley-Davidson, BMW, KTM and Royal Enfield.

The supply chain also remains a challenge. The EV segment depends on rare earths imported from China, while the global supply of components such as steel, aluminium and copper has recently been affected by the Iran war; Sudarshan Venu says the business environment remains volatile and the company will need to manage risks as it goes.

Expansion in Europe and the U.S. is the company's next priority. Since 2021, TVS Motor has built its e-bike presence by acquiring stakes in Swiss e-bike brand EGO Movement and Swiss E-Mobility Group, established the TVS eBike division in Zurich in 2025, entered into a European distribution partnership with Emil Frey and appointed an EV distributor for Spain and Portugal in April; in the U.S., the company aims to build its initial presence through Norton.

Our previous report summarized ICRA's rating actions of September 11, 2026, which included the rating reaffirmation of Credit Agricole CIB (India), an [ICRA]AA+ (stable) rating for subordinated debt of TVS Credit Services Limited, and rating withdrawals for certain securitization deals of Sundaram Finance. That article explained why such credit-rating updates are important for risk assessment, ongoing monitoring and capital raising in banking/NBFCs and structured finance.

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