TVS Motor Company is planning to expand its presence in the electric vehicle (EV) market by entering segments ranging from electric bicycles to mini trucks, with the goal of becoming a comprehensive player in the sector.

Additionally, the company intends to launch electric three-wheelers for public and cargo transport in 2025 at its factory in Hosur. An electric small commercial vehicle is also scheduled for launch in 2026-2027, which may require the establishment of a new manufacturing line.

A project, internally known as N606, is currently under conceptualisation. This project involves the development of a small mini truck designed to compete with Tata Motors' Electric Ace, with a payload capacity of less than 1 ton.

The vehicle could potentially be available by 2026-2027, with the company anticipating annual sales of between 8,000 and 10,000 units.

TVS Motor is also progressing with its electric three-wheeler plans. A passenger three-wheeler, codenamed N603, and a cargo three-wheeler, codenamed N604, are expected to be launched in 2025. These models may be unveiled at the upcoming Bharat Mobility Show.

Initially, TVS Motor anticipates combined monthly sales (for both cargo and passenger variants) of around 1,000 units, with the potential for scaling up based on market demand.

Although the company did not respond to Autocar Professional's request for comment on the new product plans, reports suggest that TVS Motor is in discussions with Hyundai Motor India, the country's second-largest passenger vehicle maker, to jointly develop an electric three-wheeler.

Under a potential contract manufacturing agreement, TVS would oversee local production, while Hyundai would handle the engineering and design aspects.

TVS Motor is focusing on investments in electric vehicle technology and geographic expansion to increase its revenue. The company has allocated Rs. 10 billion (US$ 115 million) in capital expenditure for the current financial year, with approximately 70% of this amount allocated for product development and digital capabilities.

India's electric vehicle retail sales increased by approximately 27% year-on-year in 2024, with two- and three-wheelers accounting for nearly 95% of the total sales.

Although TVS Motor has captured a significant market share in the electric two-wheeler sector with models such as the iQube and X, it has yet to fully capitalise on the electric three-wheeler market.

The profitability demonstrated by electric three-wheelers in both cargo and passenger segments suggests that the sector is poised for rapid adoption. The demand for urban mobility, particularly driven by the expansion of taxi and delivery services, is boosting sales of electric vehicles in the three-wheeler segment.

Currently, Mahindra, Bajaj, Piaggio, and start-ups such as YC Electric and Saera Electric dominate this market. TVS Motor, which already offers internal combustion engine-powered passenger and cargo three-wheelers under the TVS King range, expects to launch its first electric three-wheeler later this year.

The growing need for affordable delivery services, combined with the importance of last-mile connectivity, is increasing the demand for both electric three-wheelers and small electric mini trucks.

Mini trucks and small commercial vehicles in the sub-5-ton category are expected to play a significant role in the early stages of electrification in the commercial vehicle sector.

TVS Motor's forthcoming electric mini truck is likely to compete with Tata's ACE and Mahindra's Zeo, offering a carrying capacity of up to 1 ton.