Ultraviolette to invest ₹779 crore in Hosur EV plant with 250,000-unit capacity

The Bengaluru-based EV maker plans to invest ₹779 crore over five years in a Tamil Nadu facility, with initial annual capacity of 250,000 vehicles, expandable to 500,000. It is also targeting mass-market demand with the sub-₹2 lakh Shockwave motorcycle and sub-₹1.5 lakh Tesseract scooter.

— Source publishedThu, 10 Sept, 2026, 12:17 IST·First seen Thu, 10 Sept, 2026, 12:25 IST·Source Business Standard · Companies

What happened

Ultraviolette Automotive · Ultraviolette will invest ₹779 crore over five years in a Hosur plant, initially producing 250,000 EVs annually. The company is

Key facts

  • ₹779 crore investment
  • $81.93 million
  • 250,000 vehicles initial annual capacity
  • 500,000 vehicles expandable annual capacity
  • 50,000 units existing annual capacity
  • 1.03 million electric two-wheelers sold in India in first eight months of 2026
  • 40%-45% projected electric two-wheeler adoption by FY2030
  • 10% electric two-wheeler share of overall sales in August 2026
  • Shockwave priced below ₹2 lakh
  • Tesseract priced below ₹1.5 lakh
  • 10,000 scooter units monthly expected domestic demand
  • 3,000+ electric motorcycles sold globally in first half
  • 15% export sales share, potentially 25% within five years

Why this matters

The expanded Hosur footprint strengthens Ultraviolette’s strategic position for partnerships in components, batteries, distribution and financing as it targets substantially higher-volume EV segments.

What to watch

  • Construction and commissioning milestones for the Hosur plant, including disclosed phase-one output timing.
  • Preorders, delivery timelines and final specifications/pricing for Shockwave and Tesseract.
  • Dealer, service-center and fast-charging network additions in tier-2 and tier-3 cities.
  • Monthly registration volumes, market share and realized selling prices versus Ola Electric, Ather, TVS, Bajaj and Hero MotoCorp.
  • Battery supply contracts, localization announcements, incentive approvals and fundraising/cash-flow updates.
  • Evidence of discounting, warranty claims, recalls or delivery-quality issues as volumes rise.
  • Secure long-term battery-cell, battery-pack, motor, semiconductor and controller supply agreements to support staged production ramp-up.
  • Expand sales, service and spare-parts coverage beyond major metros before mass-market model deliveries begin.
  • Build financing, leasing and insurance partnerships to reduce effective monthly ownership costs for Shockwave and Tesseract buyers.
  • Use the Hosur investment to deepen Tamil Nadu supplier localization and seek state and central manufacturing incentives.
  • Prioritize quality-control, battery safety, warranty provisioning and field-service capacity to avoid reputational damage during volume expansion.