Two-Wheeler Companies Face Rising Warranty Costs Due to EVs

Two-wheeler companies in India are setting aside more money to cover potential vehicle defects.

This is happening because they are selling more electric vehicles (EVs).

EVs are newer, so they sometimes have more problems at first, leading to more warranty claims.

Companies like TVS, Bajaj, and Hero are increasing the money they put aside for these warranties.

Even though it's less than 1% of their total income, a big jump in warranty costs can lower their profits.

This also comes even after they have tried to improve production quality.

The companies are working to fix the issues, particularly with batteries and electronics, to build customer trust.