Tunwal E-Motors Targets 1,000+ Dealers by FY27: Can a Wider Network Help It Capture India’s Non-Metro EV Demand?

Tunwal E-Motors Limited has announced an aggressive dealership expansion plan, targeting over 1,000 customer touchpoints across India by FY 2026–27. The Pune-based electric two-wheeler manufacturer, which is currently present across 19 states with more than 450 dealers, is looking to more than double its retail footprint as it attempts to strengthen its position in India’s fast-growing affordable electric mobility space.

The move comes at a time when India’s electric two-wheeler market is gradually moving beyond early adopters in large cities. According to Vahan data, electric two-wheeler sales in India stood at around 14.01 lakh units in FY26, growing 21.8% year-on-year, while EV penetration in the overall two-wheeler market improved to around 6.5%.

For companies such as Tunwal, the next phase of growth may not come only from product launches or pricing, but from distribution depth, local service confidence and financing access—especially in Tier II and Tier III markets.

Tunwal E-Motors plans to expand its dealer network to over 1,000 touchpoints by FY27, focusing on Tier II and Tier III EV markets.

Tunwal’s Expansion Plan: Focus Beyond Metros

Tunwal’s dealership expansion will focus on high-potential states including Tamil Nadu, Karnataka, Kerala, Andhra Pradesh, Odisha, West Bengal, Assam, Bihar and Uttarakhand. The company also plans to further consolidate its presence in western markets such as Maharashtra, Gujarat and Rajasthan.

This regional strategy is significant because electric two-wheeler adoption in India is no longer limited to premium urban buyers. Rising petrol prices, lower daily running costs and improved consumer awareness are pushing EV consideration in smaller towns as well. However, in these markets, the purchase decision is often more dependent on after-sales support, spare-parts availability, local dealer trust and financing options than on headline specifications alone.

That is where Tunwal’s network-led strategy becomes important. A wider dealership base can improve visibility, test-ride access and post-purchase support, but it also raises the pressure on the company to maintain consistent dealer quality, service training and parts supply across regions.

Strong Growth, But Scale-Up Will Test Execution

Tunwal claims to have sold 69,737 vehicles in the last financial year, registering year-on-year growth of 51.33%. The company also says its annual revenue has crossed ₹250 crore, supported by a portfolio of more than 23 products.

Publicly available financial data also indicates that Tunwal reported net sales of around ₹276.84 crore in FY26. This places the company among the growing set of regional and mid-sized EV two-wheeler manufacturers trying to benefit from the wider electrification of India’s commuter mobility market.

However, the challenge is that India’s electric two-wheeler space is becoming increasingly competitive. Large legacy players and well-funded EV startups are both expanding rapidly. FY26 electric two-wheeler retail data shows that TVS, Bajaj and Ather were among the leading players in the segment, highlighting how intense the market has become.

For Tunwal, the key question will be whether its network expansion can translate into sustainable volumes without compromising dealer viability, product reliability or service consistency.

Why Dealerships Matter More in Smaller EV Markets

Unlike metro customers, buyers in smaller towns often evaluate EVs differently. Range, charging time and acquisition cost remain important, but confidence in local service support can be the deciding factor. A scooter or bike that promises low running cost may still struggle if customers are unsure about battery support, spare-parts availability or repair turnaround time.

Tunwal appears to be positioning its dealership network as an adoption enabler rather than just a sales channel. The company says it is strengthening its after-sales service ecosystem, spare-parts availability and accessory offerings. It has also tied up with financing partners such as Bajaj Finance and Bundela Fincorp to make purchases easier for customers.

This is a practical approach because financing remains a major lever in India’s two-wheeler market. Affordable EMIs, low down payments and trust in the financier can directly influence conversion, particularly in semi-urban and rural regions.

Backward Integration Could Improve Long-Term Competitiveness

Tunwal has also stated that it is investing in lithium battery manufacturing and backward integration. If executed well, this could help the company improve cost control, supply security and product consistency over time.

Battery cost and reliability remain among the most critical factors for electric two-wheeler makers. Companies that gain better control over battery sourcing, quality checks and after-sales support are likely to be better placed as the market matures and customers become more demanding.

That said, backward integration is capital-intensive and execution-heavy. The success of such a strategy will depend on technology capability, quality control, localisation depth and the ability to scale production without affecting financial discipline.

Management View

Commenting on the development, Mr. Jhumarmal Tunwal, Chairman and Managing Director of Tunwal E-Motors, said the company’s growth reflects increasing acceptance of electric mobility across India. He added that dealership expansion remains a key priority to ensure customers across regions have access to reliable EV solutions and support, especially in non-metro markets where trust and accessibility play an important role in adoption.

Auto Punditz View

Tunwal’s plan to expand to more than 1,000 dealers by FY27 is ambitious and well aligned with the direction of India’s electric two-wheeler market. As EV demand spreads beyond large cities, distribution reach and service confidence will matter as much as product pricing.

However, network expansion alone will not guarantee success. The company will need to ensure that every new touchpoint delivers a reliable ownership experience. In the EV space, poor service, battery-related concerns or inconsistent dealer support can quickly damage customer trust.

If Tunwal can combine wider retail access with dependable products, affordable financing and strong after-sales support, it could strengthen its position in India’s non-metro EV market. But the next stage of growth will be determined less by the number of dealers added and more by the quality and consistency of the ecosystem built around them.