TVS Motor Co. has entered fiscal year 2027 (FY27) with accelerated speed, reporting its highest-ever quarterly sales of 1.63 million units in the June quarter (Q1FY27), up 28% year-on-year (y-o-y). Growth was driven by strong growth across domestic markets, exports and electric vehicles. Sales for June rose as much as 47% y-o-y to 590,000 units.
In FY26, TVS Motor’s growth had outpaced the market, as its domestic ICE (internal combustion engine) two-wheeler volumes grew 19% versus industry growth of around 10%, while international sales rose 31% against industry growth of 23%. This suggests the company has been gaining market share and not just benefiting from an industry upcycle.
What helped TVS outperform? Unlike peers that depend heavily on a single segment, TVS has built a presence across scooters, premium motorcycles, exports and electric vehicles. The scooter portfolio, led by the Jupiter and Ntorq, has been a key beneficiary of consumers shifting towards higher-value products. This diversified presence has allowed the company to participate in multiple growth pockets simultaneously.
What can drive further growth? Exports could be a vital growth driver. International sales rose 33% y-o-y to a record 468,000 units in Q1FY27. So far, the recovery has been led by Africa and parts of Asia. The next phase may come from geographic expansion, with management identifying Latin America as a key focus market. The caveat is that TVS must succeed in scaling up exports even as existing markets mature.
Electric vehicles (EVs) are another area worth watching. TVS Motor’s EV sales rose 86% y-o-y in Q1FY27 to 130,000 units, or roughly 35% of FY26’s total volume. That’s no mean feat. TVS held about 24% share in India’s electric scooter market for June in terms of registrations. Ola has 8% marketshare and Ather 16%.
Coming to commercial mobility, three-wheeler sales grew 63% in FY26 and another 48% in Q1FY27. The company is expanding across electric cargo vehicles, passenger EVs and CNG-powered vehicles, while also leveraging its partnership with Hyundai. Although the business remains smaller than the two-wheeler business, it could become a more meaningful contributor over the next few years if the adoption of commercial EVs accelerates.
The company’s investment plans indicate confidence in future demand. TVS has earmarked about ₹3,500 crore of capex for FY27, including capacity expansion that will take annual production capacity to around 8.3 million units.
That said, export growth remains vulnerable to geopolitical disruptions and logistics bottlenecks. Furthermore, competition in electric scooters is intensifying, with players such as Bajaj Auto Ltd, Ola Electric Mobility Ltd and Ather Energy Ltd battling for market share.
TVS Motor’s shares currently trade at 32 times its FY28 estimated earnings, as per Bloomberg. Despite strong execution, the valuation appears demanding, especially as competition intensifies across key segments. Sustaining growth will increasingly depend on TVS continuing to gain market share from rivals, which may become more challenging ahead. Further, commodity inflation could also put pressure on margins if pricing actions fail to offset higher costs.
While the stock has declined by around 2% so far in 2026, it has gained 25% over the past year, suggesting investors are adequately capturing the brighter prospects.