TVS Motor and Hero MotoCorp Increase R&D Spend in FY26 to Drive EV Shift

India’s major two-wheeler manufacturers are significantly stepping up investments in engineering and product development as the industry transitions toward electric mobility, connected technologies, software-led vehicles, and premium market segments. TVS Motor Company, Hero MotoCorp, and Ather Energy are emerging as the front-runners in this research and development race across the two-wheeler sector.

TVS Motor Company has established itself as the largest spender among the leading two-wheeler firms, nearly doubling its R&D outlay over a two-year period. The company’s R&D expenditure reached Rs 1,254 crore in FY26, up from Rs 1,025 crore in FY25 and Rs 645 crore in FY24.

For TVS Motor, which stands as India’s third-largest two-wheeler manufacturer by volume, the steep increase in R&D funding forms part of a broader “R&D-first” strategy. The company now has more than 2,000 engineers working on key technological fronts, including electrification, connected platforms, AI-driven design, and next-generation engine development.

To support these engineering programs, TVS Motor operates a global R&D network spanning Hosur, Bologna, Jakarta, and Solihull. This international setup brings together design and engineering capabilities from multiple global markets to power product innovation.

Meanwhile, Hero MotoCorp has sustained its R&D outlay above the Rs 1,000 crore threshold for the second consecutive year. The manufacturer allocated Rs 1,129 crore to R&D in FY26, representing 2.4 percent of its total revenue. This marks a rise from the Rs 1,039 crore allocated during FY25.

Hero MotoCorp has focused its engineering resources on connected technologies, low-emission powertrains, and digital capabilities. As a result of these technical programs, the company has filed more than 1,300 patents as competition intensifies across the industry.