Ultraviolette Automotive plans to invest ₹779 crore in a new electric two-wheeler plant in Hosur, Tamil Nadu, as the Indian electric vehicle maker expands production and prepares to enter the mass-market segment. The facility will initially produce 250,000 vehicles annually, with the capacity to be increased to 500,000 units as demand grows.
The investment will be made over the next five years and funded through the company’s internal reserves, equity and future cash flows, with limited reliance on debt, Chief Technology Officer Niraj Rajmohan told Reuters. The plant will complement Ultraviolette’s existing manufacturing facility near Bengaluru, which has annual production capacity of up to 50,000 vehicles.
The company said Hosur was selected because of its proximity to its Bengaluru research and development centre and access to an established automotive supply chain. The new facility is intended to support the company’s expansion beyond its current premium electric motorcycle range and into higher-volume products.
Ultraviolette co-founder and Chief Executive Officer Narayan Subramaniam said demand for the company’s current products and upcoming models was exceeding the capacity of its existing plant. The company plans to launch the Shockwave motorcycle at a price below ₹2 lakh and the Tesseract scooter below ₹1.5 lakh.
The expansion comes as electric two-wheeler sales rise in India. Government data cited in the report showed that electric two-wheeler sales exceeded 1.03 million units in the first eight months of 2026. Their share of total two-wheeler sales crossed 10 per cent for the first time in August, according to the report.
Concerns about the compatibility of older petrol vehicles with E20 fuel are also contributing to interest in electric two-wheelers, although the report does not quantify how much of the market’s growth is attributable to that factor. Consulting firm McKinsey estimates that electric two-wheelers could account for 40 per cent to 45 per cent of the segment by the 2030 financial year.
Ultraviolette expects domestic demand for its scooters to reach at least 10,000 units a month, Subramaniam said. That would place the company in closer competition with larger electric two-wheeler manufacturers, including Ola Electric and Ather Energy.
The company said it sold more than 3,000 electric motorcycles globally in the first half of 2026. It reported sales above those of Zero Motorcycles, which sold about 1,756 units, and Harley-Davidson’s LiveWire, which sold about 300 units during the same period, according to figures cited by Ultraviolette.
Exports currently account for about 15 per cent of Ultraviolette’s sales, with Europe and Latin America among its overseas markets. Subramaniam said the company expects exports to rise to 25 per cent of sales within five years. The next phase of the company’s expansion will therefore involve both the development of higher-volume domestic products and increased manufacturing capacity at the planned Hosur facility.
