Ultraviolette Plans $82M EV Plant in Tamil Nadu as Demand Rises

Ultraviolette plans to invest ₹779 crore in a new Hosur plant with an initial capacity of 250,000 electric two-wheelers annually. The expansion will support mass-market models, rising domestic demand and the company’s growing export ambitions.

Indian electric two-wheeler startup Ultraviolette Automotive plans to invest around $82 million (₹779 crore) to establish a new manufacturing facility in Hosur, Tamil Nadu, as it prepares to scale production amid rising demand for electric vehicles. The facility is expected to strengthen the company’s manufacturing capacity and support its expansion into the mass-market electric two-wheeler segment.

The proposed plant will have an initial annual production capacity of 250,000 vehicles, which can subsequently be expanded to 500,000 units. Ultraviolette plans to make the investment over the next five years, creating additional capacity beyond its existing manufacturing facility near Bengaluru, which currently has the capability to produce up to 50,000 vehicles annually.

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The expansion comes as the company prepares to broaden its product portfolio with more affordable electric two-wheelers. Ultraviolette’s upcoming Tesseract electric scooter is expected to be priced below ₹1.5 lakh, while the Shockwave motorcycle is expected to cost below ₹2 lakh. The models are aimed at a wider consumer base and are central to the company’s plans to increase sales volumes.

Ultraviolette, which is backed by TVS Motor Company and Qualcomm, expects domestic demand for its electric scooters to reach at least 10,000 units per month. The company sold more than 3,000 vehicles globally during the first half of 2026 and is preparing to increase production capacity as it moves towards higher-volume models.

India’s electric two-wheeler market is also expanding rapidly. More than 1.03 million electric two-wheelers were sold during the first eight months of 2026. McKinsey estimates that electric two-wheelers could account for 40% to 45% of total two-wheeler sales in India by fiscal 2030, indicating significant long-term growth potential for manufacturers.

Ultraviolette is also targeting international markets as part of its growth strategy. The company plans to increase exports to Europe and Latin America, with overseas sales expected to rise from about 15% to 25% of total sales over the next five years. The planned Tamil Nadu facility will therefore provide additional manufacturing capacity as the company expands both its domestic presence and international footprint.

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The new plant represents a major capacity expansion for Ultraviolette and reflects the broader shift towards electric mobility in India. By combining higher production capacity with lower-priced models and export expansion, the company aims to strengthen its position in the increasingly competitive electric two-wheeler market.