Given remarkable sales growth over the past five months, Ather Energy announced today that it is building a second facility in Hosur, Tamil Nadu, to increase production and meet growing demand for the Ather 450 Plus and Ather 450X electric scooters. The second Ather facility, which will be located near the facility that will be operational in early 2021, will have a total annual production capacity of 280,000 electric scooters, giving Ather Energy a cumulative annual production capacity of 400,000 units – nearly four times the current production capacity of the Startups of 120,000 units.
The second Ather facility is scheduled to go live in 2022, and the company says it has invested Rs 650 billion in “increasing operational efficiency and production capacity.” In his statement, Ather also says the new facility will focus on making lithium-ion batteries. Tech2 has reached out to Ather Energy for specific inputs about the plant itself and we will update this story as soon as we have it.
This announcement comes at a time when all electric bike manufacturers in the country are experiencing overwhelming demand for their products following the revision of the FAME II electric bike subsidy and the introduction of country-specific EV subsidies. In its statement, Ather Energy says sales have increased 20 percent every month since November 2020 and that bookings for the 450 Plus and 450X quadrupled between April and October this year. In fact, Ather Energy had its best month ever in terms of sales in October when it sold nearly 2,800 units, according to analysts JMK Research. a 12-fold increase compared to the numbers in October 2020.
On November 17, Tarun Mehta, CEO of Ather Energy, tweeted a picture of the first Hosur plant, indicating that the 600-700 scooter factory had become zero.
This place used to have 600-700 scooters. Now there is 0 inventory! pic.twitter.com/VQdL0o5ZSx
– Tarun Mehta (@tarunsmehta) November 17, 2021
Regarding the second plant, Mehta said the current plant is already operating at full capacity in light of increased demand and that Ather will be India’s leading manufacturer of electric vehicles next year.
“The demand for electric vehicles has skyrocketed across the country and customers are expecting electric scooters to delight them. This customer expectation is why our 450 line of electric scooters – the 450X and 450 Plus – have seen tremendous demand as it is the best electric scooter in the country today. Our Experience Centers are growing rapidly, and our retail presence is expected to grow six-fold in the coming quarters. So within just ten months of the opening of our current plant, we are already working to full capacity. We will put the second system into operation for 2022. With this capacity expansion, Ather is well on the way to becoming the largest electric vehicle manufacturer in the country next year, ”said Mehta.
Originally only present in Bengaluru, Ather Energy is now present in 23 cities across India and plans to set up a total of 150 adventure centers in 100 cities by March 2023. The Ather Grid fast charging network currently has over 200 charging points across the country, and Ather is already working with Hero MotoCorp to help India’s leading two-wheeler manufacturer integrate its fast-charging system into Hero’s upcoming electric two-wheelers.
Ather isn’t the only player talking about producing electric two-wheelers on a grand scale – Hero Electric has announced it will ramp operations to an annual production capacity of five lakh units, while Ola Electric previously announced it will have a capacity of ten lakh units in phase 1 of his Futurefactory setup.
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