Ather taking its business seriously, commissions the second plant to scale up production electric scooters

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With the rising demand for Ather 450 Plus, 450X electric scooters, Ather Energy plans to set up a second manufacturing unit in Hosur.


Ather 450X

Ather, the Hero MotoCorp backed EV mobility witnessed a 12-fold increase in sales in October due to festive season demand. Banking on such high demand for its electric scooters the company is now planning to expand its manufacturing facility with a second plant in Hosur, Tamil Nadu. 

With the rising demand for the Ather 450 Plus, and Ather 450X electric scooters, the company is setting up another plant in the country to ramp up production. The second plant is expected to put shoulder to the wheel in 2022 and it will be near the facility that ‘went live earlier in 2021.’ As per the Firstpost report, the second Ather plant will have a total annual production capacity of 2,80,000 electric vehicles, thereby the company having a cumulative production capacity of 4,00,000 units annually. 

Notably, the previous plant for its electric scooters had started its production capacities in Hosur only with 1,20,000 units capacity. The new facility will also focus on lithium-ion batteries which as per the company is a key focus area. Ather has committed an investment of Rs 650 crore towards ‘enhancing operational efficiency and production capacity.’ While Make in India is said to be pivotal for the company, and Ather states that almost 90 percent of the production is localized in the country. 

While the two-wheel EV manufacturers are getting an overwhelming response for their products, courtesy of the revised FAME-II subsidy, Ather Energy is betting high on the aspect, as the company’s sales growth surged by 20 percent every month since November 2020 with 450 Plus and 450X bookings cited to have grown four-fold between April, and October.

“The EV demand has been shooting up across the country, and customers are coming in expecting electric scooters to wow them. This customer expectation is why our 450 series of electric scooters – the 450X and 450 Plus is seeing massive demand as it is the best electric scooter in the country today. 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. With this capacity expansion, Ather is well on its way to becoming the country’s largest EV producer by next year”, Tushar Mehta, CEO of Ather Energy said (via Firstpost).

With the initial setup in Bengaluru, the company now has its presence in 23 cities across India. Its rival Ola is also planning to expand its production capacity with the former revealed to have a capacity of ten lakh units in Phase I of its Futurefactory setup. Meanwhile, homegrown brand Revolt is prepping to expand selling its RV400 electric bike to 70 cities in the coming months.

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