Ultraviolette eyes 6-8 month start for Rs 779cr TN plant

BENGALURU: Electric two-wheeler maker Ultraviolette Automotive expects its Rs 779-crore Tamil Nadu factory to go live in six to eight months. Full-scale production is targeted for Q2 FY28. The expansion comes as it prepares to fulfil more than 70,000 paid bookings for its Tesseract scooter.The factory will come up at the SIPCOT industrial park near Shoolagiri in Krishnagiri district. It will initially produce 2.5 lakh vehicles annually and can later scale to 5 lakh units.Land formalities are underway and construction is expected to begin shortly. “We are looking at a go-live in about six to eight months. Six months is an optimistic timeline,” cofounder and CTO Niraj Rajmohan told TOI.Trial runs are expected during the first half of FY28. Full-scale production is planned for the July-September quarter.Rajmohan said Shoolagiri was selected for its proximity to the company’s Bengaluru R&D operations and the Hosur automotive supply chain.The Tamil Nadu plant will operate alongside Ultraviolette’s Electronics City factory in Bengaluru. The company is investing Rs 200 crore to raise that facility’s annual capacity from about 30,000 vehicles to 50,000-60,000 units.A March 27 company release had proposed a two-phase investment programme in Karnataka. It covered the Electronics City expansion and a proposed 1.5 lakh-unit factory in the state.Rajmohan said multiple locations were still being assessed for the larger expansion at that stage. Tamil Nadu has now been finalised for the new high-volume plant. The Electronic City facility will continue to operate and expand. “Both will be active,” he said.Ultraviolette joins other Bengaluru EV companies expanding manufacturing outside Karnataka. Ather Energy began production in Hosur in 2021 and later opened a second facility there. It is also adding a third plant in Maharashtra. Ola Electric built its Futurefactory and battery-cell gigafactory in Krishnagiri.The new Ultraviolette plant will make the F77, X-47, Shockwave and Tesseract, besides future models. Some lines will be dedicated to scooters. Others can switch between motorcycles and scooters as demand changes.All Tesseract reservations are paid, Rajmohan said. The booking amount rose from Rs 1,000 to Rs 5,000, while cancellations have remained below 2%. Ultraviolette expects monthly scooter demand of at least 10,000 units.The company plans to fund the expansion through equity, internal reserves, future cash flows and limited debt. It is also in funding discussions and expects to share details of a round shortly.The Tamil Nadu plant could create 2,000-4,000 direct jobs and more than 10,000 indirect jobs. Exports are expected to account for 15% of volumes initially and could rise to 25%.Get the latest Business News and Live updates. Download the TOI app.