By S. JHA
TVS Motor, Ather Energy, Lumax Auto Technologies and other auto-linked businesses are entering a new growth phase as EV adoption, premiumisation, exports and capacity expansion reshape the sector.
Mumbai, August 17, 2026 — India’s automobile and auto-component sector is entering a fresh phase of expansion, with electric vehicles, premium products, export programmes and new manufacturing capacity emerging as key growth drivers, according to the latest “Fastest Growing Businesses” report by SOIC × StockScans.
The report tracks growth catalysts and management guidance across listed businesses and identifies multiple structural drivers for the auto sector. Its sector analysis covers two- and three-wheelers, diversified auto ancillaries, wheels and other components.
Among two-wheeler makers, TVS Motor Company stands out for the simultaneous expansion of its EV, three-wheeler, international and premium motorcycle businesses.
TVS Motor’s EV sales rose 86% in Q1 FY27 to 130,000 units, while EV revenue reached about ₹1,780 crore. The company is increasing monthly EV capacity from 40,000 to more than 50,000 units. Its iQube crossed one million cumulative sales in June 2026, per the report.
The company’s three-wheeler sales also rose 48% in Q1 FY27 to 67,000 units. Capacity is being increased from 20,000 to about 30,000 units a month, while EV penetration in the category has crossed 40%.
TVS is simultaneously expanding overseas. International sales reached a record 4.68 lakh units in Q1 FY27, up 33% year-on-year, with exports accounting for about 26% of turnover. New markets include South Africa, Zambia, Egypt and Morocco.
The company plans to raise two-wheeler capacity from 0.68 crore units to 0.83 crore units by Q4 FY27. Total FY27 capital expenditure is expected at about ₹3,500 crore.
Ather Energy represents another major EV growth story. Its upcoming EL platform is targeted at the ₹1 lakh-₹1.25 lakh mass-market segment, which accounts for an estimated 45%-50% of the electric two-wheeler market. The report describes EL as a major growth driver for FY27-FY28.
Ather’s AURIC Factory 3.0 is expected to add 42,000 units a month, or about five lakh units annually, to existing Hosur capacity. This would substantially expand production capacity as the company prepares to launch EL.
The auto-component segment is also seeing significant capacity-led expansion.
Lumax Auto Technologies has commissioned new and expanded facilities while targeting growth in mechatronics, intelligent vehicle products and aftermarket demand. Its management expects about 20% CAGR between FY25 and FY31, with FY28 EBITDA targeted at around ₹1,000 crore.
ASK Automotive is another company with multiple growth levers. Its Karoli alloy-wheel plant has moved into commercial production, with confirmed orders of ₹70-90 crore for FY27 and about ₹250 crore for FY28. The company is also adding brake capacity and developing a sunroof-cable joint venture.
The report also points to Steel Strips Wheels, where alloy wheels account for about 35% of revenue and capacity is being expanded. The company expects FY27 top-line growth of more than 20%, while export revenue is targeted at about ₹600 crore.
The common thread across the sector is capacity expansion backed by visible demand. EV adoption, premiumisation, export diversification and increasing content per vehicle are creating new revenue pools for both vehicle manufacturers and component suppliers.
(Disclaimer: This article is only for informational purposes. No investment advice is here made.)
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