Friday, June 24, 2022

Ather Energy in talks with various states to set up 3rd EV manufacturing plant

Hero MotoCorp-backed electric two-wheeler maker Ather Energy is in talks with several state governments to set up a new manufacturing facility in the country

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New Delhi: Hero MotoCorp-backed electric two-wheeler maker Ather Energy is in talks with several state governments to set up a new manufacturing facility for EV in the country, according to sources. The company is said to be in talks with officials of several state governments, including Andhra Pradesh, Maharashtra, Gujarat, Telangana and Karnataka, to set up an additional manufacturing plant with an annual capacity of about 15 lakh units.

The sources said the company is in the last leg of negotiations and is likely to finalise the location within the next month.

When contacted, a company spokesperson declined to comment on the matter.

As per the sources, the company, which sells two electric scooters – the 450X and the 450 Plus – is looking at around 100 acres of land parcel to build its third facility in the country.

Ather has a plant in Hosur, Tamil Nadu, with a current capacity of 1.2 lakh units per annum.

The capacity is expected to go up to four lakh units per year with the coming up of a new facility in Hosur, which is expected to be functional later this year.

Last month, Ather Energy raised USD 128 million (around Rs 991 crore) from National Investment and Infrastructure Fund Ltd’s (NIIFL) Strategic Opportunities Fund (SOF) and Hero MotoCorp, along with additional investors.

The company plans to use the funding to expand manufacturing facilities, invest in research and development, charging infrastructure and grow its retail network.

Hero MotoCorp is an early investor in Ather Energy and has been part of its growth story since 2016.

The company currently holds around a 35 per cent stake in the electric two-wheeler maker.

Ather reported its highest-ever monthly sales of 3,807 units in May.

It is currently present across 32 cities with 38 experience centres. It aims to have 150 such centres in 100 cities by 2023.

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