Chennai: India’s two-wheeler makers are putting engineering at the heart of their next competitive battle. TVS Motor Company, Hero MotoCorp and Ather Energy are emerging as the front-runners in the R&D race in India’s two-wheeler industry, as manufacturers step up investments in product development and related technologies to navigate the shift towards electric mobility, premiumisation, connected technologies and software-led vehicles.TVS Motor Company has emerged as the biggest spender among the companies considered here, nearly doubling its R&D investment in two years. Its R&D spend rose to Rs 1,254 crore in FY26, from Rs 1,025 crore in FY25 and Rs 645 crore in FY24.For India’s third-largest two-wheeler maker by volumes, the sharp increase in spending is part of an “R&D-first” strategy. TVS Motor has more than 2,000 engineers working on electrification, connected platforms, AI-driven design and next-generation engines. Its global R&D network spans Hosur, Bologna, Jakarta and Solihull, bringing together engineering and design capabilities across markets.Hero MotoCorp has sustained R&D spending above Rs 1,000 crore for the second consecutive year. Its Rs 1,129 crore outlay in FY26 represented 2.4% of revenue, up from Rs 1,039 crore in FY25. The company has filed more than 1,300 patents as it expands work on connected technologies, low-emission powertrains and digital capabilities.Hero is also bringing features traditionally associated with premium motorcycles—such as ride-by-wire, traction control and customisable riding modes—to a wider customer base.For Ather, R&D is even more central to its business model. The EV maker spent Rs 448 crore on R&D in FY26, up from Rs 345 crore. As of March 31, 2026, 856 engineers accounted for 42% of its on-roll workforce, highlighting the company’s engineering-heavy approach.Ather’s R&D spans vehicle platforms, battery technology, electronics, software, charging and component engineering. It filed 283 patents in FY26, taking cumulative filings to 643. New platforms such as EL and Zenith are expected to provide the foundation for its next phase of product expansion.Bajaj Auto increased its R&D expenditure to Rs 693 crore from Rs 623 crore, although R&D as a share of sales declined to 1.2% from 1.3%.India’s two-wheeler makers have historically spent less on R&D than many automakers in developed markets. The rising focus on R&D signals a broader shift as India’s two-wheeler market evolves from a predominantly mechanical product into a connected, software-enabled mobility platform. As the industry becomes more technology-intensive, engineering capabilities, intellectual property and the ability to develop differentiated products are emerging as increasingly important sources of competitive advantage.
