Companies

Ather Energy plans ₹650-cr investments over 5 years

Our Bureau | | Updated on: Nov 29, 2021
image caption

Opens second E2W factory at Hosur to make 4 lakh units/annum

Electric two-wheeler start-up Ather Energy has indicated that it will invest ₹650 crore over the next five years to enhance operational efficiency and production capacity to meet the surge in demand for electric scooters while announcing the start of commercial operations of its second electric two-wheeler factory at Hosur in Tamil Nadu..

The company, which, at present sells two electric scooters — 450X and 450 Plus, plans to manufacture 400,000 units per annum, a big increase from its current capacity of 120,000 units, according to a company statement.

Ather Energy to offer connectivity features for free on Ather scooters for next 6 months

Ather recorded its best-ever monthly sales numbers this October, posting a 12-fold increase over last year and achieving revenue run rate of $100 million, making it the largest EV maker by value in this segment

Strong demand, sales

The company said it has been registering 20 per cent month-on-month sales growth since November 2020, highlighting the strong demand for its electric scooters. Ather has 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 company has also witnessed a tremendous increase in consumer interest for its latest scooter, the 450X.

“The EV demand has been shooting up across the country, and customers are coming in expecting electric scooters to wow them. Our experience centres are scaling up rapidly, and our retail footprint is set to grow by six times in the coming quarters. So, within just ten months of opening our current facility, we find ourselves already operating at full capacity. We are commissioning the second plant to be ready for 2022,” said Tarun Mehta, Co-Founder & CEO, Ather Energy.

Ather Energy had set up its first manufacturing facility at Hosur earlier this year.

Apart from the EV production, Ather’s manufacturing facility will also focus on lithium-ion battery manufacturing. Ather Energy is the only EV OEM in India to make its battery packs in house and has filed 13 patents on the design and manufacturing of the li-ion batteries.

Ather Energy plans to strengthen its retail operations by expanding to new markets.

Published on November 29, 2021

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