Ultraviolette to invest ₹779 crore in Hosur factory, targeting 5 lakh annual capacity
Ultraviolette Automotive will invest ₹779 crore over four to five years in its BIGGA factory near Hosur. Phase I targets 2.5 lakh vehicles annually and 2,000 direct jobs, with Phase II lifting capacity to 5 lakh units after 2029 as the company ramps scooters, localisation and exports.
What happened
Ultraviolette Automotive · Ultraviolette will invest ₹779 crore over four to five years in its BIGGA factory near Hosur, targeting 2.5 lakh annual vehicles in
Key facts
- ₹779 crore cumulative investment
- 2.5 lakh vehicles Phase I capacity
- 5 lakh vehicles Phase II capacity
- 10,000 units per month target
- 2,000 Phase I direct jobs
- 4,000-5,000 Phase II direct jobs
- Over 90% component localisation
- 10-15% near-term export volumes
- 20-25% export-volume target by 2030
- Exports to 19 countries
Why this matters
Ultraviolette’s factory scale-up makes it a more consequential EV two-wheeler partner or target, with localisation, export channels and component alliances becoming key strategic levers.
What to watch
- Tesseract order conversion, cancellation rates and monthly dispatches relative to the 10,000-unit target.
- Construction and commissioning milestones for BIGGA Phase I, including whether investment remains on schedule and within budget.
- Evidence of localisation gains, particularly battery packs, power electronics, motors and critical semiconductor-linked components.
- New funding rounds, debt facilities or strategic partnerships needed to finance capex and working capital.
- Electric two-wheeler subsidy, tax and financing-policy changes that affect premium EV affordability.
- Competitor price cuts, new launches and production expansions from Ola Electric, Ather, TVS, Bajaj and Hero MotoCorp.
- Export market approvals, distributor announcements and the share of sales generated outside India.
- Accelerate Tesseract supplier sourcing, tooling and localisation agreements to support the 10,000-unit monthly production target.
- Expand retail, test-ride, service and spare-parts coverage ahead of volume deliveries, especially in major metro and Tier-1 markets.
- Secure working-capital facilities and potentially additional equity funding, since the ₹779 crore capex program precedes full production utilisation.
- Build export homologation, distribution and after-sales partnerships in selected European, Middle Eastern and Southeast Asian markets.
- Use production scale to negotiate battery-cell, electronics and motor-component contracts with price-down and supply-security provisions.