TVS Motor lifts FY26 R&D to ₹1,254 crore, doubling down on EVs, connected platforms and AI

TVS Motor raised R&D spend to ₹1,254 crore in FY26 (from ₹1,025 crore in FY25), backed by 2,000+ engineers focused on electrification, connectivity and AI. Record 5.89 million vehicles sold, ₹47,270 crore revenue and ₹6,079 crore EBITDA, with Norton premium repositioning slated for FY27.

— Source publishedMon, 29 Jun, 2026, 16:22 IST·First seen Mon, 29 Jun, 2026, 16:26 IST·Source The Hindu BusinessLine

What happened

TVS Motor Company · TVS Motor raised FY26 R&D spend to ₹1,254 crore focused on EVs, connected platforms and AI, launching new models. Record 5.89 million

Key facts

  • R&D ₹1,254 crore FY26
  • R&D ₹1,025 crore FY25
  • R&D ₹645 crore FY24
  • 2,000+ engineers
  • 5.89 million vehicles FY26
  • revenue ₹47,270 crore
  • EBITDA ₹6,079 crore
  • 97% renewable energy
  • 76,000 tonnes carbon avoided
  • CEO remuneration ₹64.22 crore

Why this matters

The R&D acceleration and Norton premium repositioning hint at appetite for EV, connected-platform and AI capability tuck-ins to fill technology and brand gaps ahead of FY27.

What to watch

  • FY26 quarterly margin compression below ~12.5% EBITDA
  • New EV model launches or AI-feature announcements
  • EV two-wheeler market share data shifts
  • FAME/subsidy policy changes affecting EV demand
  • Norton FY27 product and geographic rollout details
  • Engineer headcount and patent/IP output metrics
  • Track quarterly EBITDA margin trajectory against rising R&D base
  • Monitor EV volume mix and per-unit profitability disclosures
  • Watch Norton premium launch timeline and pricing for FY27
  • Assess competitive R&D spend from Bajaj, Hero, Ola Electric
  • Evaluate connected-platform monetization (subscriptions, software ARPU)