TVS Motor, the country’s third-largest two-wheeler maker, is diversifying its supply chain to mitigate concentration risks in sourcing Anti-lock Braking Systems (ABS) ahead of their mandatory rollout in January 2026.
Preparing for Mandatory ABS Regulations
“On brakes and other aspects of the supply chain, we are always working on reducing concentration by keeping multiple suppliers so that we create a resilient and robust supply chain,” said Sudarshan Venu, MD, TVS Motor Company, while responding to a shareholder’s question at the company’s 33rd Annual General Meeting (AGM) on Friday. The shareholder had raised concerns over a potential rare earth-like supply chain concentration risks given that only two players—Bosch and Endurance Technologies—currently manufacture ABS.
“In ABS, there are two players and more players are investing in this business and we will plan our supply chain keeping the resilience in mind,” Venu said.
Currently, ABS is compulsory only for two-wheelers above 125cc, which make up about 16% of industry volumes. From January 2026, the government has mandated ABS for the remaining 84% of two-wheelers, including 100cc motorcycles, scooters, and mopeds. Brokerages estimate the new rule could add ₹3,000–5,000 per vehicle, depending on category. For TVS Motor, 54–64% of its portfolio is estimated to come under the new regulation.
Venu also said scooter sales have been rising faster than other segments over the last two years and will remain a growth driver. TVS has also maintained leadership in the electric two-wheeler segment for five straight months since April, holding over 25% market share and surpassing 600,000 units in sales since its launch.
The Norton Brand: A new growth engine
On the Norton brand, Venu said the motorcycles will debut towards the end of this year or early next year in the UK, India, and key European markets. “Four new models will be launched and will be available for the summer of 2026,” he said. TVS, which acquired UK-based Norton in 2020, has set up a manufacturing facility in the UK to design and produce a range of motorcycles. It plans six models by 2026, starting with a flagship 1200cc four-cylinder superbike. “The revenues and financial performance will definitely improve after the Norton launch,” Venu added.
While e-bike sales in Europe have been slow, Venu said synergies among its e-bike business will help reduce costs.
Alongside its electric mobility arm, TVS Electric Mobility, the company also holds stakes in Swiss E-Mobility Group (SEMG) and European e-bike brand EGO Movement. “With the recovery of the (European) market, product improvement, cost reduction and new product launches, we hope to see progress in the coming years,” he said.
Chairman Sir Ralf Speth said FY25 was the company’s strongest year, with sales of 4.74 million units, up 13% over FY24. Two-wheeler exports rose 22.8% to 1.09 million units, led by demand from Africa and Latin America.
He also highlighted a 45% year-on-year rise in E2W sales in FY25, with TVS iQube e-scooters now available in South Asia. “We are observing similar results in the EV 3 wheeler space. Within the very first few months of entering the segment, we have achieved a 10% share in the EV 3 wheeler market,” he said.
Effective August 25, Sudarshan Venu will take charge as chairman and managing director of TVS Motor. Sir Ralf Speth will step down as chairman following the AGM but will continue as chief mentor for three years from August 23, ensuring continuity in strategic guidance.
Shares of TVS Motor closed 0.41% higher on the NSE at ₹3,294.20.