TVS Motor Company on Wednesday said the supply of magnets, a key component used in electric vehicles, is improving and full availability of its electric models should return to the market within a month, after recent production constraints affected deliveries.
The company’s MD & CEO K N Radhakrishnan said EV demand had softened temporarily because of the shortage but was expected to recover.
“We had a setback because of magnet availability. We tried our level best, and now it is recovering. Hopefully, in another month, you will see full EV supplies in the market as well,” Radhakrishnan said at the company’s Q3 FY26 earnings call. “The EV penetration, which is temporarily subdued, is expected to improve going forward.”
Despite the supply disruption, TVS sold 1.06 lakh electric scooters in the December 2025 quarter, crossing the one-lakh mark in a quarter for the first time. This represented a 40 per cent year-on-year increase. By comparison, VAHAN data shows the overall EV industry grew 14 per cent in the first nine months of the financial year and 7.5 per cent year-on-year in the December quarter.
Industry momentum to continue in Q4
Radhakrishnan said the recovery in the broader two-wheeler industry seen in the December quarter was expected to extend into the March quarter, supported by the GST rate cut, stable inflation and easier credit conditions.
“In Q3, post the GST reduction, the industry grew by nearly 20 per cent. In Q4, also, you will see anything upwards of 15 per cent growth, and the company will try to outpace the market growth,” he said.
For the full financial year FY26, industry growth is expected to be around 9 per cent, compared with about 2 per cent in the first half of the year.
Urban markets grew by about 21 per cent in the December quarter, while rural markets expanded by close to 19 per cent, indicating that the recovery was broad-based. Radhakrishnan said rural sentiment remained supportive, aided by favourable economic conditions and income stability.
He also pointed to cumulative interest rate cuts of 125 basis points by the Reserve Bank of India as a factor improving liquidity and vehicle financing.
“With top-line growth, we will liberate scale benefits,” he said.
TVS said scooters and premium and super-premium motorcycles were seeing steady demand and would remain central to its growth strategy. The company plans to focus on new variants, technology and features rather than relying only on price increases to manage cost pressures.
Exports rise but Europe remains weak
The Chennai-headquartered company reported a 23 per cent increase in exports from India in the December quarter. During the quarter, Africa showed sequential improvement, while Latin America recorded year-on-year growth. South Asia remained resilient, supported by recovery in Sri Lanka and stable demand in Nepal.
Europe, however, continued to remain weak, with the company indicating that a recovery could take a few more quarters.
The company is also increasing local sourcing in Mexico to manage the impact of new duties and said it continues to receive production-linked incentive benefits for its EV portfolio, though some overlap exists as suppliers also receive incentives.
Profit rises on volume growth
On a consolidated basis, net profit stood at ₹841 crore for the quarter ended 31 December 2025, up 49 per cent from ₹566 crore a year earlier. Revenue from operations rose 34 per cent to ₹14,755.52 crore from ₹11,034 crore in the same quarter last year.
Overall, two-wheeler and three-wheeler sales, including international operations, grew 27 per cent to a record 15.44 lakh units, compared with 12.12 lakh units in the year-ago period.
Radhakrishnan said the company was managing commodity price pressures through scale benefits, cost-reduction programmes, improvements in product mix and selective price adjustments.
“We are very confident that this momentum will continue. Like Q3, you can expect good growth in Q4 as well, and we will do better than the industry,” said Radhakrishnan.
