Ather intends to increase output from 120,000 to 400,000 units per year.
Ather Energy announced on Monday that it will open its second manufacturing facility in Hosur, which the firm claims will help it fulfil increased demand for its electric scooters. Ather presently sells the 450X and 450 Plus, with plans to increase output from 120,000 to 400,000 units.
Earlier this year, the business opened its first manufacturing facility in Hosur.
With companies like Ather Energy, Hero Electric, TVS, and Okinawa seeking for attention in India’s electric two-wheeler market, the competition is heating up. Ola Electric’s arrival has heightened competition, especially since the firm has set a target of 10 lakh units every year.
Ather, on the other hand, has been around longer than Ola and is aiming to strengthen its position in the EV market. In October, Ather achieved its highest-ever monthly sales figures, with a 12-fold increase over the previous year and a revenue run rate of $100 million. “EV demand has exploded across the country, and customers are expecting electric scooters to blow them away,” says Tarun Mehta, Co-Founder and CEO of Ather Energy. “As a result, we are currently working at full capacity just ten months after opening our current building.” We are commissioning the second facility, which will be operational in 2022.”
To accommodate the exponential increase in demand, Ather has committed to investing 650 crores over the next five years to improve operational efficiency and manufacturing capacity. Localization is also important, according to the corporation, which claims that 90 percent of manufacturing is done locally.
Ather is far from alone in pursuing growth goals. Hero Electric has also indicated that production capacity at its Ludhiana site will be increased. Okinawa plans to invest up to 250 crores in its new manufacturing facility in Bhiwadi, Rajasthan, in order to achieve 100% local production. Ola Electric, meantime, has been making news for what is rumoured to be the world’s largest factory for electric two-wheelers.