Ather to set up a second production unit in India
Hero MotoCorp-backed electric two-wheeler manufacturer Ather Energy on Monday announced plans to set up its second manufacturing plant, which, when commissioned in 2022, will increase its capacity to 4 lakh vehicles per year, against 1.20 lakh currently. The new facility will move to Hosur, Tamil Nadu, to meet growing demand for its electric two-wheelers – 450 X and 450 Plus – the company said in a statement. Bengaluru-based Ather Energy had set up its first manufacturing plant in Hosur earlier this year.
In addition to manufacturing electric vehicles, the new manufacturing unit will also focus on lithium-ion batteries, which is a key focus area for Ather Energy, the company said. With the new plant, the company plans to manufacture 400,000 units per year, a significant jump from its current capacity of 120,000 units, he said.
“We are commissioning the second plant which will be ready for 2022. With this capacity expansion, Ather is on track to become the largest producer of electric vehicles in the country by next year,” said Tarun Mehta, co-founder and CEO of Ather Energy. In October, Ather Energy achieved its best monthly sales, growing 12 times over last year, according to the company. In addition, the company has a turnover of $ 100 million, making it the largest manufacturer of electric vehicles by value in this segment, the company added.
“Our experience centers are growing rapidly and our business footprint is expected to grow six-fold over the next few quarters. So, just ten months after opening our current facility, we are already at full capacity,” said Mehta. . The company said it continues to strengthen its position in the two-wheeled electric vehicle space, adding that it has seen 20% month-on-month sales growth since November 2020. Ather recorded a 3x increase in visits, web inquiries and 4X growth in vehicle bookings during the April-October period of this year, in addition to witnessing a huge increase in interest of consumers for its latest scooter, the 450X, according to the press release.
The company began operations at the Hosur manufacturing facility earlier this year, meeting demand across the country. It tracks 90% of Ather Energy’s 450X and 450 Plus manufacturing, including the battery, which is manufactured in-house by Ather Energy. The company has pledged to invest Rs 650 crore over the next five years to improve operational efficiency and production capacity to meet the exponential rise in demand, the statement said.
Ather Energy plans to strengthen its retail operations by expanding into new markets. The company plans to expand to around 150 experience centers in 100 cities by March 2023. It has also invested heavily in charging infrastructure to provide a holistic experience for the biker community, the company said.