[TusharK]

Bangalore-based electric 2-wheeler maker Ather Energy will set up its third manufacturing unit in Maharashtra. The new factory will come up in Aurangabad Industrial City (AURIC), located in Chhatrapati Sambhaji Nagar.



Devendra Fadnavis, Deputy Chief Minister of Maharashtra, recently met Ather Energy co-founder Swapnil Jain. In a post on X (formerly Twitter), Fadnavis confirmed that Ather will invest over Rs 2,000 crore in the state.

The Deputy CM also revealed that the new facility will have an annual production capacity of 1 million 2-wheelers and batteries. It is expected to provide employment to around 4,000 people.



According to Ather Energy, the location of the plant was chosen with the aim of reducing logistic costs and hastening the delivery of finished products to customers across India.

The third manufacturing unit will more than triple Ather’s total production capacity. Currently, the company’s two production units have a combined capacity of 4.2 lakh units.

Link to Team-BHP News

[i10_sanjay]

Why keep setting up manufacturing units when the existing ones in Bangalore and Hosur are very underutilized? They hardly sell 10K units a month. Even if they magically double their sales overnight, that would still be 240K units a year. Why do they need plant that can produce a million units? Heck, even OLA sells only 400K scooters a year. Ather's new plant is a case of burning money that's not theirs.

[The Pianist]

Originally Posted by i10_sanjay

Why keep setting up manufacturing units when the existing ones in Bangalore and Hosur are very underutilized? They hardly sell 10K units a month. Even if they magically double their sales overnight, that would still be 240K units a year. Why do they need plant that can produce a million units? Ather's new plant is a case of burning money that's not theirs.

Ather have only concentrated on the higher end of the market and has now stepped into the mass market category.
Their concentration on the North Indian markets are also now being expanded, add to that they still have to explore the exports markets available.

On the other hand this could be a play for government PLI scheme or a showcase of strength for contract manufacturing.

And not to forget the IPO bound company is called Ather Energy, their pipeline products/services are yet to be known.

Have always found Ather to be a showcase of Indian 2W innovation and a conservative company when it comes to investments.