“You know that post-GST rationalisation, we saw a significant growth in two and three-wheeler industry. We saw a good, healthy growth in ICE; we also saw accelerated EV adoption. Overall, the outlook is still positive,” he said in the company’s post earnings call with analysts.
But this year there are some challenges because of the base effect that is going to be play, Radhakrishnan said.
Last year September end, you saw the GST getting corrected. But we should all remember that from October, November, the industry numbers have significantly gone up,” he pointed out.
“On top of it, we are expecting that there will be growth. The growth will be good single-digit, okay, based on overall activities, overall GDP growth. Based on that, we are expecting that you will see the ICE segment, both in two-wheeler and three-wheeler, to grow single-digit,” Radhakrishnan said.
“EV will continue to keep up the momentum, and you will see a very good growth. But again we should remember that the base is going up, even in EV,” he said.
EV penetration in two-wheelers in September 2026 has reached 11.6 per cent. For scooters, it’s almost 22 per cent and for three-wheeler EV is also almost 47 per cent. This momentum is likely to continue even in third quarter, Radhakrishnan said.
TVS Motor will continue to grow much ahead of the market in domestic and international business in the third and fourth quarter, he said.
On EV, Radhakrishnan said the company was operating at a monthly capacity of around 65,000 units, covering domestic and export markets. “We have already planned for the next level of capacity expansion to about 80,000,” he added.
He said the company keeping inventory at dealers in the band of 21-30 days and expects the momentum to continue in the coming quarters.
Radhakrishnan said the company had raised selling prices by 1.6 per cent in early Q3 due to high raw material costs and would review them further after Diwali.