EV startup Ather Energy to expand manufacturing facility to 4 lakh units per annum

Ather Energy will put up its second manufacturing facility at Hosur, and this expanded capacity will meet the growing demand for its two scooter brands.

EV startup Ather Energy to expand manufacturing facility to 4 lakh units per annum

Monday November 29, 2021,

3 min Read

Leading electric vehicle (EV) company Ather Energy will be more than doubling its manufacturing capacity with commissioning of its second unit at Hosur, which will take the present output of 120,000 units per annum to over 400,000 units for its scooters – 450x and 450 plus.


Ather Energy had set up its manufacturing facility in Hosur earlier this year and the company claimed that in the month of October it had registered its best-ever monthly sales numbers, with 12-fold growth over last year and achieving revenue run rate of $100 million. The second unit will be operational next year.

 Tarun Mehta, Co-founder and CEO, Ather Energy

Tarun Mehta, Co-founder and CEO, Ather Energy

On the expansion, 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 today.”

The Hosur manufacturing facility will enable 90 percent of the manufacturing of Ather’s two EV scooters and the company has committed to invest Rs 650 crore over the next five years to enhance operational efficiency and production capacity


Apart from the EV manufacturing, the facility will also focus on lithium-ion battery manufacturing, which is a key focus area for Ather Energy. It has already filed 13 patents on the design and manufacturing of these batteries.


According to Ather Energy, it has been registering 20 percent month-on-month sales growth since November 2020. Besides, it recorded a 3X increase in walk-ins, web inquiries, and test rides from April-October 2021 and a 4X growth in vehicle booking in the period.


The startup plans to strengthen its retail operations by expanding to new markets. It also plans to expand to around 150 experience centers in 100 cities by March 2023. It has also invested heavily in the charging infrastructure.


Ather Energy was founded in 2013 by Tarun Mehta and Swapnil Jain. It is backed by Flipkart founders Sachin Bansal and Binny Bansal, Hero Motocorp, and Tiger Global. It launched its first model in 2018, which was followed by the second one in 2020.


At present, the company operates in 23 cities and has over 200 charging points across the country.

“We are commissioning the second plant to be ready for 2022. With this capacity expansion, Ather is well on its way to becoming the country's largest EV producer by next year,” Tarun said.

Edited by Megha Reddy