Ather said that the new plant will allow it to get closer to more markets in the country, thereby reducing logistics cost and decreasing delivery times
The IPO-bound startup currently has two manufacturing facilities in Tamil Nadu for battery production vehicle assembly
Ather, which competes with the likes of Ola Electric and TVS, recently turned into a public entity as part of its IPO preparations
IPO-bound electric two-wheeler manufacturer Ather Energy
is setting up its third manufacturing facility in Maharashtra to manufacture escooters and battery packs.
Ather currently has two manufacturing facilities in Tamil Nadu. One of these is for battery production and the other for vehicle assembly. Operations will continue as it is at these units, the startup said in a statement.
The new facility in Maharashtra’s Chhatrapati Sambhaji Nagar will allow the electric vehicle (EV) startup to get closer to more markets in the country, thereby reducing logistics cost and hastening the delivery of its finished products to customers.
Speaking on the development, Devendra Fadnavis, deputy chief minister of the state, said, “Maharashtra offers a conducive business environment and continues to be a top destination for investments… We are happy to have Ather in Maharashtra, solidifying the state’s position as India’s leading automotive and manufacturing hub.”
Founded in 2013 by Swapnil Jain and Tarun Mehta, Ather is one of the leading players in the Indian electric two-wheeler market in the country. After building its market on its 450 series of escooters, the startup recently launched a family escooter series Rizta and forayed into the smart helmet category.
The startup also operates a charging network, Ather Grid, and makes energy storage systems for the EV.
Announcing the plans for setting up the new manufacturing facility, Ather cofounder and CTO Jain said, “With our expanding product portfolio and the increasing consumer demand for our scooters, we decided to strategically diversify our production capabilities to an additional location that will be closer to more markets in the country. The new manufacturing facility will not only rationalise our logistic costs but will also hasten the delivery of finished products to our customers.”
As per Vahan data, the startup’s total vehicle registrations rose to 1.09 Lakh units in FY24 from 76,941 units in FY23. However, it has been facing increasing competition from the likes of IPO-bound Ola Electric and legacy automotive players like TVS Motor and Bajaj.
Ather, in the statement, said that with the demand for electric two-wheelers increasing, it is focussing on increasing its production capacity, expanding its product portfolio, retail outlets, and charging infrastructure across the country. The startup currently has over 200 Experience Centres and over 1,900 fast chargers across India.
As part of its IPO preparation, Ather recently turned into a public entity, changing its name to Ather Energy Ltd from Ather Energy Pvt Ltd earlier. The startup is backed by Hero MotoCorp, GIC, NIIF, Nikhil Kamath, and Tiger Global.
Ather’s turnover stood at INR 1,753.8 Cr in the year ended March 31, 2024 (FY24), a decline of 1.5% from INR 1,780.9 Cr reported a year ago. Its net loss stood at INR 864.5 Cr in FY23.
