After surpassing new-age startups in the electric two-wheeler (E2W) market, legacy manufacturers are stepping up research and development (R&D) investments in design and new product development to stay ahead of their tech-driven rivals.
TVS Motor
TVS Motor has invested Rs 1,025 crore in R&D in FY25, crossing the Rs 1,000-crore mark for the first time. The country’s third-largest two-wheeler maker has more than doubled its R&D spend over the past two years, from Rs 495 crore in FY23 to a record high in FY25. The company said it continues to enhance its design, computing and validation facilities, with efforts focused on internal combustion engines, electric mobility, alternate fuels, flex fuels, advanced safety systems and sustainability.
TVS Motor currently leads the E2W market with over 20% share, though its growth is driven primarily by the iQube electric scooter. In contrast, startups such as Ola Electric have an expanded line-up with the S1 series, S1Z scooters for gig and last-mile delivery, and the recently launched Roadster electric motorcycles.
TVS Motor President and CEO KN Radhakrishnan recently said the company will continue to invest aggressively in R&D for both ICE (internal combustion engine) and EV segments, with multiple new electric two- and three-wheelers slated for launch in the coming quarters.
“Even though the products are ready, we will ensure they get what they deserve in terms of quality and positioning, as we are investing heavily in people and resources,” he said in the latest earnings call.
Hero Motocorp
Hero MotoCorp, India’s largest two-wheeler manufacturer, spent Rs 1,039 crore on R&D in FY25, focusing on premium products and EVs. “From electric mobility to intelligent systems and next-gen platforms, our efforts are focused on what’s next,” the company said.
Hero recorded its highest-ever EV sales in FY25, delivering over 58,000 VIDA electric scooters — a 200% increase over FY24 — driven by the expansion of its retail network and the launch of the mass-market VIDA V2 range priced below Rs 1 lakh. The company is now the fifth-largest E2W seller.
Bajaj Auto allocated Rs 625.66 crore to R&D in FY25, up from Rs 520.18 crore in FY24. Its investments were directed towards its flagship ICE model Pulsar and the Chetak electric scooter line. The company, India’s second-largest E2W seller, sold 260,033 units in FY25, securing a 20% market share.
Among the three players, R&D spending as a share of revenue stood at 2.8% for TVS Motor, 2.5% for Hero MotoCorp, and 1.3% for Bajaj Auto.