Ola in sight? Ather Energy to set up second manufacturing base to up production
Ather Energy on Monday announced it will set up its second manufacturing facility in Hosur and claims that it will help the company meet with an increase in demand for its electric scooters. Ather currently offers the 450X and 450 Plus and is looking at taking up its production from 120,000 to 400,000. The company had established its first manufacturing facility in Hosur just earlier this year.
The battle in the electric two-wheeler space in India is heating up with passing time with the likes of Ather Energy, Hero Electric, TVS, Okinawa - among others - vying for attention. The entry of Ola Electric has further intensified rivalry, especially because the company has a stated target of 10 lakh units per annum.
Ather, however, has been present for longer than Ola and is looking to consolidate its position in the EV space. In October, Ather registered its best-ever monthly sales numbers, registering 12-fold growth over last year and achieving revenue run rate of $100 million. “The EV demand has been shooting up across the country, and customers are coming in expecting electric scooters to wow them," says Tarun Mehta, Co-Founder of and CEO at Ather Energy. “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."
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Ather has committed to invest ₹650 crores in the next five years to enhance operational efficiency and production capacity to meet the exponential surge in demand. Localization is also crucial with the company stating that 90% of the manufacturing is localized.
Ather is hardly alone in going ahead with expansion plans. Hero Electric too has stated that it will increase production capacity at its facility in Ludhiana. Okinawa will invest up to 250 crores in its new manufacturing facility in Bhiwadi in Rajasthan in an attempt for 100% localized production. And Ola Electric has been making headlines repeatedly for what may well be the world's largest factory for electric two-wheelers.