Ather Energy to Invest Rs 2,000 Crore in New Scooter Plant

Ather Energy backed by Hero MotoCorp’s 40% stake has announced that it is set to invest Rs.2,000 crore to establish its third manufacturing facility in Chhatrapati Sambhaji Nagar, Maharashtra. Located in Aurangabad Industrial City (AURIC), this facility aims to generate around 4,000 jobs.

Production Capacity 

Ather’s two existing manufacturing units in Hosur, Tamil Nadu—one for battery production and the other for vehicle assembly—will continue operations, while the new facility will help them reach more markets and reduce logistics costs. The new plant will be designed to have an annual production capacity of up to one million vehicles and battery packs. This development also reflects Maharashtra’s favorable business environment and strong electric vehicle (EV) manufacturing policies. Additionally, the location benefits from the Samruddhi Expressway, which boosts the region’s connectivity and will help the company with its operations. 

Recent Production Expansion

Ather Energy has significantly ramped up its production capacity. In 2024, the company quadrupled its output to 4.20 lakh electric vehicles per annum with a new facility in Hosur, Tamil Nadu, following a Rs.320 crore investment. The Maharashtra plant will further boost Ather’s production, making it the largest EV manufacturer in India with a capacity of one million vehicles annually. Battery production is also set to increase to 4.3 lakh units from the current 1.2 lakh units per annum.

Public Listing Preparations

In a plan to launch an initial public offering (IPO), Ather Energy has transitioned to a public company. On June 21, the company decided to remove “Private” from its official name. The IPO, expected to be filed this month, aims to raise approximately $400 million, valuing the company at $2 billion. The company has enlisted HSBC Holdings Plc, Nomura Holdings Inc., and JPMorgan Chase & Co. to facilitate its IPO. 

Conclusion: Ather Energy’s Rs.2,000 crore investment in Maharashtra signifies a major point in its expansion strategy. The new facility not only highlights Maharashtra’s conducive environment for EV manufacturing but also brings out Ather’s position as a leading player in India’s electric vehicle market.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.