Chennai: Indian electric vehicle (EV) maker Ultraviolette Automotive plans to invest Rs 779 crore over the next five years to build a new plant in Hosur, Tamil Nadu, as it expands production capacity and targets the growing mass market for electric two wheelers, the company said, according to Reuters.
The investment will be made over the next five years and will be funded through internal reserves, equity and future cash flows, with limited reliance on debt, Chief Technology Officer Niraj Rajmohan said.
The new plant will initially have annual capacity to produce 2.5 lakh electric two wheelers, which can be expanded to 5 lakh units as demand grows. It will supplement Ultraviolette’s existing facility near Bengaluru, which has annual capacity of up to 50,000 units.
Ultraviolette co-founder and CEO Narayan Subramaniam said demand for the company’s products, including its upcoming Tesseract scooter and Shockwave motorcycle, had exceeded the capacity of its existing facility.
The company, known for premium electric motorcycles such as the F77 and X47, plans to position the new models at lower price points. The Shockwave is expected to be priced below Rs 2 lakh, while the Tesseract scooter will be priced below Rs 1.5 lakh.
Subramaniam said underlying domestic demand for Ultraviolette’s scooters was expected to be at least 10,000 units a month, potentially placing the company in competition with larger electric two wheeler manufacturers such as Ola Electric and Ather Energy.
Demand for electric two wheelers in India has also been supported by concerns over the compatibility of older petrol vehicles with E20 fuel. Government data showed electric two wheeler sales crossed 1.03 million units during the first eight months of 2026.
Consulting firm McKinsey estimates electric two wheeler adoption could reach 40% to 45% of the market by fiscal 2030. Their share of total two wheeler sales crossed 10% for the first time in August 2026.
Rajmohan said Hosur was selected partly because of its proximity to Ultraviolette’s research and development centre in Bengaluru and its access to the automotive supply chain.
Ultraviolette said it sold more than 3,000 electric motorcycles globally during the first half of the year, compared with about 1,756 units sold by Zero Motorcycles and around 300 by Harley-Davidson’s LiveWire.
Exports to Europe and Latin America currently account for about 15% of Ultraviolette’s sales, Subramaniam said, adding that the share could increase to 25% within five years.
