Ultraviolette Automotive plans to invest ₹779 crore over the next five years to build an electric two-wheeler manufacturing plant in Hosur, Tamil Nadu, as the Indian company expands capacity and targets the mass-market electric vehicle segment.
The facility will initially produce 250,000 electric two-wheelers a year and will have the potential to scale up to 500,000 units, the company’s founders told Reuters. It will complement Ultraviolette’s existing manufacturing facility near Bengaluru, which has annual capacity of up to 50,000 vehicles.
The investment will be funded through the company’s internal reserves, equity and future cash flows, with limited use of debt, chief technology officer Niraj Rajmohan said. Hosur was selected partly because of its proximity to the company’s Bengaluru research and development centre and its access to an established automotive supply chain.
Ultraviolette co-founder and chief executive officer Narayan Subramaniam said demand for the company’s products, including its upcoming Tesseract scooter and Shockwave motorcycle, was higher than the current facility could accommodate. The company plans to launch the Shockwave at a price below ₹2 lakh and the Tesseract for less than ₹1.5 lakh.
The expansion comes as electric two-wheeler sales increase in India. Government data cited in the report showed that sales crossed 1.03 million units during the first eight months of 2026. Electric two-wheelers accounted for more than 10 per cent of total two-wheeler sales for the first time in August, according to the report.
Consulting firm McKinsey has estimated that electric two-wheelers could account for 40 to 45 per cent of the segment by the 2030 financial year. The report also linked rising demand to concerns about the compatibility of older petrol vehicles with E20 fuel, a petrol blend containing 20 per cent ethanol.
Ultraviolette is backed by Qualcomm and TVS Motor and is known for premium electric motorcycles including the F77 and X47. The company expects underlying domestic demand for its scooters to reach at least 10,000 units a month, a level that would place it in competition with larger electric two-wheeler manufacturers such as Ola Electric and Ather Energy.
The company sold more than 3,000 electric motorcycles globally during the first half of the year, compared with about 1,756 units for Zero Motorcycles and roughly 300 units for Harley-Davidson’s LiveWire, according to figures cited by Ultraviolette. International sales currently account for about 15 per cent of its total sales.
Subramaniam said exports to Europe and Latin America could rise to 25 per cent of the company’s sales within five years. The planned Hosur plant’s capacity expansion and investment schedule will proceed over the same five-year period.
