TVS Motor to Invest Rs 2,000 crore in Karnataka in Five Years

The automaker plans to set up a global capability center, expand production and engineering capabilities and set up a test track and a new office in Karnataka.

Kiran Murali  By Kiran Murali calendar 11 Feb 2025 Views icon6309 Views Share - Share to Facebook Share to Twitter Share to LinkedIn Share to Whatsapp
TVS Motor to Invest Rs 2,000 crore in Karnataka in Five Years

TVS Motor Company has signed a Memorandum of Understanding with the government of Karnataka to invest Rs 2,000 crore in the state over the next five years as it plans to set up a global capability center and expand production and engineering capabilities. 

Besides global capability center and production expansion plans, the two and three-wheeler maker plans include building a test track and a new company office infrastructure in the state.

“As we make progress towards our 2030 goals, the plan that we have outlined today will help deliver impactful solutions in personal and commercial mobility, setting new benchmarks,” Managing Director Sudarshan Venu said at the Invest Karnataka 2025 event on Tuesday.

"We envision a capability center that will draw top talent and great ideas, and have research capability to be the birthplace of next-gen bikes. The office and allied infrastructure will bring together engineers, designers, innovators, AI and ML experts, who will define what is next! Karnataka is a place where great ideas take off and we are excited to expand our footprint in the state.”

The company has three manufacturing facilities in India –  Hosur (Tamil Nadu) and Mysuru (Karnataka) and Nalagarh (Himachal Pradesh). The Mysuru plant currently has an annual production capacity of 1.5 million vehicles, catering to both domestic and export markets.

TVS Motor noted that the Mysuru facility generated Rs 7,600 crore in revenue, of which Rs 1,200 crore comes from exports. The automaker plans to double both the export and total revenue from the Mysuru plant. 

TVS Motor is betting on investments in electric vehicle technology and geographical expansion to grow its revenue in the future. The company has announced a partnership with Hyundai Motor India to explore advanced electric three-wheelers and micro four-wheelers. 

While the discussions remain in the exploratory stage, Hyundai plans to provide design, engineering, and technology expertise, while TVS will focus on manufacturing and marketing these vehicles in India.

Autocar Professional exclusively reported that TVS Motor is planning to enter segments ranging from electric bicycles to mini trucks in a bid to become an end-to-end player in the burgeoning electric vehicle market.

Sources said TVS Motor is considering localizing the e-bike from its European subsidiary, SEMG while it is looking at an electric small commercial vehicle in 2026-27, which might require an all-new manufacturing line. 

Last year, the automaker's Chairman Ralf Dieter Speth said that TVS Motor is transforming into a high-tech global mobility company, with electric vehicles as the fulcrum of its future growth. 

RELATED ARTICLES
Rosmerta Files Insolvency Plea Against Ola Electric Technologies Subsidiary Over Payment Default

auther Kiran Murali calendar15 Mar 2025

The insolvency petition has been filed at the National Company Law Tribunal (NCLT) at a time when Ola Electric’s vehicle...

Tesla seeks certification for two EV models in India: IANS

auther Autocar India calendar15 Mar 2025

Tesla India Motor & Energy, Tesla's Indian subsidiary, has submitted two applications for the homologation of Model Y an...

Skoda Ready to Go Solo for India EV Business If Right Partner Not Available

auther Sarthak Mahajan calendar14 Mar 2025

The company has reportedly talked to Mahindra & Mahindra, Tata Motors and JSW Group for partnering on its EV business in...