In a significant move to support its future growth, TVS Motor Company is evaluating plans to set up a new manufacturing facility in India, with Gujarat and Madhya Pradesh emerging as the leading contenders.
According to sources, the proposed plant is part of the company’s broader strategy to scale up production capacity in response to rising demand in both domestic and international markets. The facility is expected to be operational by around 2028 and could initially have a production capacity of approximately 2 to 2.5 million units, with scope for further expansion.
The expansion comes as TVS Motor aims to significantly boost its annual two wheeler production to nearly 10 million units by the end of the decade. The company has been witnessing strong growth across segments, including scooters, premium motorcycles, and electric two wheelers, increasing pressure on its existing manufacturing infrastructure.
Currently, TVS Motor operates manufacturing plants in Hosur, Mysuru, and Nalagarh, along with an overseas facility in Indonesia. These plants collectively have an estimated production capacity of around 6.4 million units and are running at high utilisation levels.
While Gujarat and Madhya Pradesh are frontrunners, the company is also considering other states such as Tamil Nadu and Karnataka for the new facility. The final decision is expected to depend on factors like infrastructure, policy support, and logistics advantages.
TVS Motor’s growth strategy is driven by strong domestic demand, expanding export markets particularly in Africa, and increasing adoption of electric mobility. The company has also strengthened its position in the electric two wheeler segment, reflecting rising consumer interest in sustainable transportation.
The planned investment highlights the company’s intent to enhance its manufacturing footprint and remain competitive in India’s rapidly evolving two wheeler market, where demand is steadily shifting toward premium and electric vehicles.
