NEW DELHI: Electric two-wheeler maker Ather Energy is planning to set up a new manufacturing facility and it is in talks with several state governments for the same. According to industry sources, the Hero Motocorp backed company is in talks with the state governments of Andhra Pradesh, Maharashtra, Gujarat, Telangana and Karnataka. The proposed facility, which will be its third, is likely to have an annual capacity of about 15 lakh units.
Ather has a plant in Hosur, Tamil Nadu, with a current capacity of 1.2 lakh units per annum. This will go up to 4 lakh units per year with the coming up of a new facility in Hosur, which is expected to be functional later this year.
Last month, the company had announced raising $128 million led by National Investment and Infrastructure Fund (NIIF), the Indian government’s sovereign wealth fund, and Hero MotoCorp, an early investor in Ather Energy, which holds nearly a 35% stake in the EV firm. The fund, according to the company, will be used in expanding its capacity, reach and research & development.
The sources said the company is in the last leg of negotiations and is likely to finalise the location within the next month for its upcoming facility. Ather is looking at around 100 acres of land parcel to build its new facility.
Ather, which sells two electric scooters - the 450X and the 450 Plus-reported its highest-ever monthly sales of 3,807 units in May. During the month, EV sales at large were impacted by fire explosion incidents throughout the country, according to industry experts. Despite these incidents, new age and traditional two-wheeler players are investing big money in capacity expansion as demand for e-scooters is expected to grow at a very fast pace.