Hero MotoCorp-backed electric two-wheeler maker Ather Energy on Monday said its plans to set up its second manufacturing facility, which once commissioned in 2022, will expand its capacity to 4-lakh vehicles per year from 1.20 lakh units at present.
The new facility will come up at Hosur, in Tamil Nadu to cater to the growing demand for its e-two-wheelers — 450 X and 450 Plus — the company said in a release.
The Bengaluru-based Ather Energy had set up its first manufacturing facility at Hosur earlier this year. Apart from EV manufacturing, 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 facility, the company plans to manufacture 400,000 units per annum, a significant jump from its current capacity of 120,000 units, it said.
“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,” said Tarun Mehta, Co-Founder-CEO, Ather Energy.
In October, Ather Energy delivered its best-ever monthly sales, registering 12-fold growth over last year, as per the company. Besides, the company achieved retail revenue of USD 100 million, making it the largest EV maker by value in this segment, the company added.
“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,” Mehta said.
The company said it continues to gain strength in the two-wheeler EV space, adding it has been registering 20 per cent month-on-month sales growth since November 2020.
Ather has recorded a 3X increase in walk-ins, web inquiries and a 4X growth in vehicle booking in the April-October period this year, in addition to witnessing a tremendous increase in consumer interest for its latest scooter, the 450X, according to the release.
The company started its operations at the Hosur manufacturing facility earlier this year, catering to demand from across the country. It enables 90 per cent of the manufacturing of Ather Energy’s 450X and 450 Plus to be localised, including the battery pack, which is made in-house by Ather Energy.
The company has committed to invest Rs 650 crore in the next five years to enhance operational efficiency and production capacity to meet the exponential surge in demand, as per the release.
Ather Energy plans to strengthen its retail operations by expanding to new markets. The company plans to expand to around 150 Experience Centers in 100 cities by March 2023.
It has also invested heavily in the charging infrastructure to provide a holistic experience to the rider community, the company said.