Ather Energy Commissions Second Plant, to Invest INR. 650 Crore in 5 Years

Ather Energy has commissioned its second manufacturing facility in Hosur to satisfy to the growing demand of its electric scooters, the 450X and 450 Plus, the firm stated in a statement. The company plans to manufacture 400,000 units per annum, a significant jump from its current capacity of 120,000 units. Ather Energy had set up its first manufacturing facility at Hosur prior this year. With this capacity expansion, Ather is on its path to becoming the country’s largest EV producer by next year, it stated in a statement.

To fuel the exponential demand, Ather has delineated an investment of Rs. 650 crore (US$ 86.5 million) in the next five years to augment operational efficiency and production capacity. Apart from the EV manufacturing, the facility will also focus on lithium-ion battery manufacturing, which the company has identified as its main focus area.

In October, Ather recorded its best-ever monthly sales numbers, registering 12-fold growth over the last year and reaching the revenue run rate of US$ 100 million making it the largest EV maker by value in this segment.

Mr. Tarun Mehta, Co-Founder & CEO, Ather Energy said “The EV demand has been shooting up across the country, and customers are coming in expecting electric scooters to wow them. This customer expectation is why our 450 series of electric scooters – the 450X and 450 Plus is seeing massive demand as it is the best electric scooter in the country at present.”

Ather Energy’s experience centres are also mounting up rapidly, and its retail footprint is set to grow by six times in the coming quarters. The firm is functioning at an optimal capacity just within ten months of opening its current facility. The second plant will be ready for 2022.

The Hero MotoCorp backed has been registering 20% month-on-month sales growth since November 2020, highlighting the strong demand for its electric scooters, it said adding that Ather has recorded a 3x increase in walk-ins, web inquiries and test rides in the first seven months of the current fiscal and 4x growth in vehicle booking in the period.

Ather asserts to be the only EV maker in India to make its battery packs and has filed 13 patents on the design and manufacturing of the li-ion batteries. The business proposes to improve its retail operations by expanding to new markets. The company plans to expand to about 150 experience centres in 100 cities by March 2023. It has also invested heavily in the charging infrastructure, it stated in the statement.