TVS Motor Company is sharpening its focus on the performance-oriented scooter segment, one of the fastest-growing categories in India’s two-wheeler market. With scooters increasingly becoming the vehicle of choice for younger, urban riders, the company sees sporty scooters as a long-term growth engine that will not only strengthen its leadership in the segment but also draw buyers from other segments.
“Two-wheeler industry over the last three years has a CAGR of 2%, scooters has a CAGR of 6% and sporty scooter has a CAGR of 11%, so scooters grew at 3x the rate of two-wheeler and sporty scooter grew at 2x the rate of scooters,” said Aniruddha Haldar, SVP, Head of Commuter & EV Business and Corporate Brand & Media. “The sporty scooter industry has been a significant presence driving growth for the scooter industry and two-wheelers overall. Hence, our focus on space is warranted.”
From a volume perspective, performance scooters have already crossed 70,000 units a month and are on track to hit 100,000 units monthly, making up almost 20% of India’s scooter industry, according to Haldar. “With India getting younger and more urbanised, this format is only going to grow. We are leaders in this category, and our aim is to consolidate that leadership.”
During FY25, automakers in India dispatched a total of 19.61 million two-wheelers into the domestic market, according to data from the Society of Indian Automobile Manufacturers. This represents a growth of 9.1% compared to the financial year 2024. Domestic scooter dispatches jumped around 17% to an all-time high of 6.85 million units, accounting for almost 35% of the two-wheeler dispatches. Motorcycle dispatches, on the other hand, grew only 5.1% to 12.25 million units.
When asked if the sharp growth curve in the sporty scooter segment would eventually flatten, Haldar said, “Why stabilise? With our demographics and aspirations, there’s still a huge upside. This category has a long journey ahead.”
On Thursday, TVS launched the NTorq 150 at ₹1.19 lakh (ex-showroom). The company believes the new variant will strengthen the NTorq brand without significantly cannibalising the 125cc version.
“Cannibalisation will be minimal,” said Gaurav Gupta, President, India two-wheeler business, TVS Motor. “The bigger opportunity is conquest. The NTorq 150 will draw customers from the sporty scooter segment, entry motorcycles, and even entry premium bikes.”
The NTorq 150 packs a stealth aircraft-inspired design, aerodynamic winglets, a 0-60 km/h sprint in 6.3 seconds, and over 50 connected features. Gupta said its package is “so appealing in terms of design, performance, technology, and stance that it will entice entirely new segments into the scooter category.”
Last week, TVS also unveiled the Orbiter electric scooter, priced at ₹99,900. With a 3.5 kWh battery and a certified range of 158 km, the Orbiter is designed to be a practical, everyday EV positioned below the iQube range. In the premium e-scooter segment, the Chennai-based company offers TVS X.
By offering both premium EVs and accessible models, TVS hopes to widen its customer base in the fast-growing electric two-wheeler market.
GST Reforms
The recent GST Council decision to cut taxes on two-wheelers up to 350cc from 28% to 18% is seen as a major positive for TVS and many other OEMs. The NTorq 150 falls into this bracket, making it more affordable for customers once the new rates take effect from September 22.
“This is like a big Diwali gift,” said Gupta. “It will build in a lot of momentum, bring in customers, strengthen middle-class spending power, and accelerate growth across the segments.
Industry analysts estimate the GST cuts could drive a 10-20% increase in demand for small cars and two-wheelers, with scooters expected to be among the biggest beneficiaries.
However, with ICE scooters now taxed at 18% and EVs continuing at 5%, the gap between the two categories has narrowed from 23% to about 13%. But TVS does not expect this to hurt electric scooter sales.
“The person who’s buying an EV, their needs and requirements are quite different from the ones going for ICE,” Gupta said. “The overall EV ecosystem like–charging infrastructure, product options–is growing in parallel. GST is one pillar, but the broader EV story remains intact. We see momentum continuing in both (EV and ICE) segments.”
The GST changes announced on September 3, also widened the tax gap within the ICE two-wheeler market itself. While scooters and motorcycles up to 350cc now enjoy the lower 18% GST, larger motorcycles above 350cc will attract a steep 40% tax, up from 28%.
The change will have little direct, immediate impact on TVS, which does not currently sell above-350cc bikes, but management acknowledged the market-wide significance. “The government has studied the market in detail and simplified the GST structure with two clear slabs,” Gupta said. “We respect the decision and will take actions to maximise its purpose.”
TVS Motor is set to roll out four new models under its British luxury marque, Norton Motorcycles, in FY2025-26 across the UK, India, and key European markets, the company said in its annual report. The lineup will be led by a flagship 1200cc four-cylinder superbike. Meanwhile, the company is also working on a single-cylinder motorcycle in the 400-450cc range and a twin-cylinder model in the 600-650cc category.