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Ultraviolette Plans ₹779 Crore Tamil Nadu Plant Amid Rising EV Demand

Written by: Team Angel OneUpdated on: 10 Sept 2026, 8:19 pm IST
Ultraviolette set to invest ₹779 crore in a Tamil Nadu plant to produce 2,50,000 electric two-wheelers annually, scaling to 5,00,000 units.
Ultraviolette Plans ₹779 Crore Tamil Nadu
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Ultraviolette Automotive, an Indian electric motorcycle manufacturer, is set to invest ₹779 crore in a new manufacturing facility in Tamil Nadu, as per the news report.  

This move aims to enhance production capacity and cater to the growing demand for electric two-wheelers in India. 

Ultraviolette's Expansion in Tamil Nadu 

The new plant in Hosur, Tamil Nadu, will initially have an annual production capacity of 2,50,000 electric two-wheelers. The facility is designed to scale up to 5,00,000 units as demand increases.  

This expansion is part of Ultraviolette's strategy to enter the mass-market segment, supported by investors such as Qualcomm and TVS Motor. 

Concerns over the compatibility of older petrol vehicles with E20 fuel are contributing to the rising demand for electric two-wheelers in India.  

Government data indicates that sales of these vehicles surpassed 10,30,000 units in the first 8 months of 2026. 

Existing and Future Production Capacities 

Ultraviolette's new facility will complement its existing plant near Bengaluru, which has a production capacity of 50,000 units annually.  

The company aims to meet the demand for its products, including upcoming models like the Tesseract and the Shockwave. 

Product Line and Market Position 

Ultraviolette is known for its premium electric motorcycles, such as the F77 and X47. The company plans to launch the Shockwave motorcycle priced under ₹2,00,000 and the Tesseract scooter for less than ₹1,50,000.  

Ultraviolette anticipates a domestic demand of at least 10,000 scooters monthly, positioning it alongside larger electric two-wheeler manufacturers like Ola Electric and Ather Energy. 

Investment and Location Strategy 

The ₹779 crore investment will be spread over 5 years, funded through internal reserves, equity, and future cash flows, with minimal reliance on debt.  

Hosur was chosen for its proximity to Ultraviolette's Bengaluru R&D centre and its access to an automotive supply chain. 

Read More: PhonePe Expands Card Payments with Visa Through Tap to Pay, Smart Accept Solutions! 

Global Sales and Export Markets 

In the first half of the year, Ultraviolette sold over 3,000 electric motorcycles globally, surpassing competitors like Zero Motorcycles and Harley-Davidson's LiveWire. Exports to Europe and Latin America currently account for about 15% of sales, with potential growth to 25% within 5 years. 

Conclusion 

Ultraviolette Automotive's ₹779 crore investment in a Tamil Nadu plant aims to produce 2,50,000 electric two-wheelers annually, with potential expansion to 5,00,000 units. The company targets the mass-market segment with new models and anticipates strong domestic and international demand. 

Disclaimer: This blog has been written exclusively for educational purposes. The securities or companies mentioned are only examples and not recommendations. This does not constitute a personal recommendation or investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions. 

Investments in the securities market are subject to market risks, read all the related documents carefully before investing. 

Published on: Sep 10, 2026, 2:49 PM IST

Team Angel One

Team Angel One is a group of experienced financial writers that deliver insightful articles on the stock market, IPO, economy, personal finance, commodities and related categories.

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