TVS Motor's 30% YoY Sales Surge: A Catalyst for India's High-Growth Two-Wheeler and EV Investment Landscape

TVS Motor Company’s record-breaking 30% year-on-year (YoY) sales growth in August 2025—reaching 509,536 units—underscores its dominance in India’s two-wheeler and electric vehicle (EV) sectors. This surge, driven by a 30% YoY rise in two-wheeler sales (368,862 units domestically) and a 35% jump in exports (135,367 units), positions the company as a prime beneficiary of India’s rapidly expanding mobility market [1]. With the three-wheeler segment surging 47% YoY to 18,748 units and EV sales inching up 1.4% to 25,138 units, TVS’s diversified portfolio aligns with both traditional and electrified demand [1].

India’s Two-Wheeler and EV Sector: A Goldmine for Investors

The Indian two-wheeler market, valued at USD 346.81 billion in 2025, is projected to grow at a 3.50% CAGR through 2034, reaching USD 472.75 billion [3]. However, the EV segment is accelerating faster, with electric two-wheelers (e-2Ws) accounting for 58–59% of India’s total EV industry in FY2025. By July 2025, e-2Ws had achieved 7.6% market penetration in registrations and 6.1% in retail sales, driven by falling battery prices (down to $115/kWh in 2024) and government incentives like the PM e-DRIVE program [2].

The FAME-II and FAME-III schemes, alongside state-level initiatives, are pushing India toward an 80% e-2W market share by 2030. With a projected CAGR of 35–40% for the e-2W segment, the market is expected to grow from USD 1.3 billion in 2024 to USD 3.0 billion by 2033 [2]. This trajectory is further bolstered by global demand, as the electric two-wheeler market is forecasted to expand from USD 71.93 billion in 2024 to USD 154.71 billion by 2034 at a 7.21% CAGR [4].

TVS Motor’s Strategic Position in the EV Race

TVS has emerged as a leader in India’s EV segment, capturing 21% market share in FY2025—surpassing rivals like Bajaj Chetak (20%) and Ola Electric (30%) [2]. In H1 2025, the company gained 1.63 percentage points in market share, the largest among major players, and achieved a 25% share in June 2025 with 23,472 EV units sold [3]. Its iQube model, a flagship electric scooter, sold 68,195 units in the current quarter, doubling its performance from the previous year [3].

Despite challenges like magnet shortages limiting EV production, TVS’s strategic focus on affordability—such as its sub-₹1 lakh EV scooter—positions it to capitalize on India’s price-sensitive market [2]. The launch of the TVS Orbiter and expansion of charging infrastructure (29,000 public chargers as of May 2025) further strengthen its competitive edge [2].

Investment Rationale: Balancing Risks and Rewards

While TVS’s EV segment contributed 10% of its FY25 revenue (₹36,251 crore), the company’s diversified portfolio—spanning ICE two-wheelers, three-wheelers, and exports—mitigates risks from EV-specific bottlenecks like magnet shortages [2]. Its strong domestic and international sales (35% YoY export growth) and leadership in both ICE and EV segments make it a resilient investment.

Moreover, India’s EV sector is attracting massive capital inflows, with Tamil Nadu alone expecting ₹50,000 crore in EV investments by 2025 [2]. TVS’s ability to innovate (e.g., the Orbiter) and scale production aligns with this momentum, offering long-term growth potential.

Conclusion

TVS Motor’s 30% YoY sales surge in August 2025 reflects its agility in navigating India’s evolving mobility landscape. As the two-wheeler and EV markets converge, TVS’s market share gains, product diversification, and strategic alignment with government policies position it as a compelling investment. While short-term challenges like magnet shortages persist, the sector’s long-term growth trajectory—driven by affordability, infrastructure, and policy support—makes TVS a standout player in India’s high-growth EV ecosystem.

Source:
[1] TVS logs record sales in August; EV sales up over 1% amid magnet-related challenges [https://www.zeebiz.com/automobile/news-tvs-logs-record-sales-in-august-ev-sales-up-over-1-amid-magnet-related-challenges-377734]
[2] India's Electric Two-Wheeler Market 2025–2030 [https://diyguru.org/guide/indias-electric-two-wheeler-market-2025-2030/]
[3] TVS Motor Gains Market Share in First Half 2025 [https://www.autocarpro.in/analysis/tvs-motor-leads-market-share-gains-in-first-half-of-2025-127355]
[4] Electric Two-Wheeler Market Leads USD 71.93 Bn in 2024 [https://www.towardsautomotive.com/insights/electric-two-wheeler-market-sizing]