The global shortage of memory chips has driven up costs, placing a huge strain on electric vehicle makers in the country.

Bengaluru-based Ultraviolette—which produces high-performance electric motorcycles—says it will not pass on the high input costs to customers and is exploring other ways to tide over the situation. 

Memory chips are a critical component of an electric vehicle, used to store data, run control software, and manage real-time operations across critical systems. 

According to Ultraviolette’s Founder and CTO, Niraj Rajmohan, RAM (random access memory) alone adds Rs 20,000 to the cost of a vehicle. With global companies building very large data centres, there has been a surge in memory chip consumption, he added. 

AI data centres are projected to consume 70% of global memory chip production in 2026. The data centre boom has led to a supply crunch, subsequently shoring up costs of chips. 

But it would not be fair to pass on the costs to customers, said Rajmohan, adding that a threefold jump in memory prices in recent times cannot translate into a threefold jump in the price of an electric bike, and customers cannot be asked to suddenly pay far more. 

For now, Ultraviolette is scouting for alternative parts, including software, components and technologies, and alternative manufacturers to partner with. 

The company is also relying on partners who hold a stake in the company, including TVS, TDK Ventures, and Intel, for their knowhow and expertise, said Rajmohan. He, however, did not elaborate on the alternatives. 

Rajmohan was speaking at the launch of X-47 Venom, Ultraviolette’s first bike built on its new platform ‘VX-100’,

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