Chennai: TVS Motor Company, a leading two and three-wheeler manufacturer, said the availability of magnets—a critical input for electric vehicle production—is improving and expects battery-powered two-wheeler penetration to pick up in the coming quarters, even as overall EV adoption in the market is slightly lower at present. “On the EV side, we had a setback because of magnet availability. We tried our level best, and now it is recovering, and hopefully, in another month, you will see full EV supplies in the market as well. The EV penetration, which is temporarily subdued, is expected to improve going forward,” K N Radhakrishnan, director & CEO, said during the company’s Q3FY26 earnings call.Despite magnet supply challenges, the company’s electric scooter volumes crossed the one lakh mark for the first time in a quarter, clocking 1.06 lakh units in the Dec 2025 quarter—a 40% year-on-year increase.This outpaced overall industry growth, with VAHAN data showing the EV industry expanding 14% in the first nine months of the fiscal and 7.5% year-on-year in the Dec quarter.He said the two-wheeler industry witnessed a sharp recovery in Q3, aided by the GST rate reduction, which helped spur consumption across categories. The industry grew nearly 20% during the quarter, with urban markets expanding by about 21% and rural markets by close to 19%. The company expects the momentum to sustain into the March quarter, supported by healthy GDP growth of around 7%, favourable monsoons, higher reservoir levels aiding rabi sowing, and a repo rate cut by the RBI. On the international front, TVS Motor reported strong export performance, with shipments from India rising 23% in Q3. Demand in Africa continued to improve sequentially, while Latin America recorded year-on-year growth. South Asia also showed resilience, led by a strong recovery in Sri Lanka and steady demand in Nepal. Europe, however, remained challenging, with growth expected to take a few more quarters to recover. On the financial front, TVS Motor posted a strong third-quarter performance, aided by higher volumes and operating leverage. Operating revenue rose 37% year-on-year to Rs 12,476 crore, while operating EBITDA increased 51% to Rs 1,634 crore. EBITDA margin expanded to a record 13.1%, while profit after tax jumped 52% to Rs 940 crore.
