Ather Energy is set to open a second factory next year at Hosur, Tamil Nadu
Electric scooter manufacturer Ather Energy has commissioned its second factory in Hosur within 10 months of opening its first plant at the industrial city, owing to growing demand for its products.
This is part of the brand’s commitment to invest Rs. 650 crores in the next 5 years to enhance its operational efficiency and production capacity. At present, Ather Energy’s first factory, which can produce up to 1.20 lakh electric scooters per annum, is operating at full capacity.
With the company’s sales growing rapidly, Ather registered its best-ever monthly sales figure last month and achieved a revenue run rate of $100 million (Rs. 750 crores), the need for capacity expansion is stronger.
Further, Ather has been registering 20 percent month-on-month (MoM) sales growth since November last year and walk-ins have multiplied threefold in the April-October 2021 period as well.
Once operational by 2022 the second Ather Energy factory in Hosur will have a manufacturing capacity of 2.80 lakh units per annum, thereby taking the total production capacity of the electric vehicle (EV) maker to 4 lakh units a year.
Apart from producing electric scooters, Ather will also focus on Lithium-ion battery manufacturing at the facility. The company makes its own battery packs and should be able to improve on its current localisation level which stands at 90 percent.
Co-founder and CEO of Ather Energy, Tarun Mehta, said, “With this capacity expansion, Ather is well on its way to becoming the country’s largest EV producer by next year.”
Mehta has also revealed that the brand’s retail footprint is set to grow by 6 times in the coming quarters. By March 2023, the company wants to expand to around 150 “Experience Centers” in 100 cities in India.