The Chennai-based two-wheeler giant is scouting new locations to keep pace with surging domestic and global demand
TVS Motor Company is moving closer to a major infrastructure milestone — its fourth manufacturing facility on Indian soil. According to sources familiar with the company’s plans, the automaker is actively evaluating sites across Gujarat, Madhya Pradesh, Tamil Nadu, and Karnataka, with a target to have the plant operational by 2028. The proposed facility could add between 2 and 2.5 million units of annual capacity, designed to be scalable as demand continues to grow.
The push comes as TVS sets its sights on a bold production target of 10 million units annually by 2030 — nearly double its current output. The company’s three domestic plants at Hosur in Tamil Nadu, Mysuru in Karnataka, and Nalagarh in Himachal Pradesh, along with its overseas facility in Karawang, Indonesia, are collectively running close to their 6.4 million-unit ceiling, leaving little headroom for the growth the company is banking on.
From Third to Contender
TVS has been one of the most compelling success stories in Indian two-wheelers over the past several years. The company surpassed Yamaha to become the world’s third-largest two-wheeler manufacturer by sales volume, and now commands close to 20 percent of the Indian market — up from roughly 16 percent just three years ago. That momentum has put it firmly in the conversation for the number two spot in India, with Hero MotoCorp and Honda Motorcycle & Scooter India still ahead, but the gap narrowing fast.
Production figures reflect this trajectory. TVS is estimated to have turned out around 5.7 million units in FY26, representing roughly 22 percent growth over the previous year. For FY27, internal projections point to output of 6.8 to 7.2 million units — a further 15 to 22 percent increase that will only be achievable with fresh capacity coming online.
A Diversified Bet Paying Off
What separates TVS from many of its peers is the breadth of its portfolio. While rivals have historically leaned heavily on commuter motorcycles, TVS has built meaningful positions across scooters, premium motorcycles, electric two-wheelers, and even three-wheelers. That diversification is now paying strategic dividends, as demand increasingly tilts toward higher-value segments.
Electric mobility has become one of the company’s fastest-growing fronts. TVS has emerged as the leader in India’s electric two-wheeler market, with annual EV output now approaching 500,000 units. The iQube scooter has been central to this push, and the company continues to invest in expanding its EV lineup. Meanwhile, its three-wheeler business is also scaling up, including a notable partnership with Hyundai focused on last-mile electric mobility solutions.
On the premium front, TVS’s decade-old partnership with BMW Motorrad continues to bear fruit. The company manufactures the BMW CE 02 in its entirety, and the alliance is set to deepen further with upcoming models sharing a platform with the forthcoming BMW F 450 GS.
Norton, Africa, and the Global Play
Internationally, TVS owns Norton Motorcycles — the iconic British brand it acquired in 2020 — which gives it an enviable premium halo in Western markets. But the volumes that matter most globally come from a different direction. TVS has built a formidable presence in African markets and other emerging economies, which together contribute a significant share of its export numbers.
This international ambition makes the capacity question even more pressing. A new plant in central India would not only ease pressure on southern facilities but also improve logistics efficiency for markets across northern and central India — and potentially reduce turnaround times for export consignments routed through inland ports.
State Courtship and Investment Signals
Several state governments are reportedly keen to host the facility. At the Invest Karnataka 2025 event, Managing Director Sudarshan Venu outlined the company’s vision, saying: “We aim to create a hub that attracts top talent, fuels groundbreaking ideas, and serves as the birthplace of next-generation motorcycles.” Machine Maker TVS has also signed an MoU with Karnataka to invest ₹2,000 crore in the state over five years, though the proposed new plant appears to be a separate, additional investment being evaluated across multiple states.
Gujarat and Madhya Pradesh are understood to be the frontrunners for the new facility, given their investor-friendly industrial policies, available land banks, and strong infrastructure connectivity. However, no official announcement has been made, and TVS did not respond to queries seeking comment.
The Road to 10 Million
The scale of what TVS is planning is worth putting in context. Reaching 10 million units by 2030 would place it in the same league as the world’s largest two-wheeler manufacturers. To get there from roughly 5.7 million today, the company needs not just a new plant, but a comprehensive ramp-up across all fronts — product, exports, EV adoption, and manufacturing efficiency.
The fourth plant, whenever and wherever it comes up, will be a critical piece of that puzzle. For a company that has steadily punched above its weight over the past decade, TVS Motor’s next factory may well be the one that changes the rankings at the very top of the industry.
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