Ather Energy has approved a capital expenditure of Rs 122 crore to expand its electric two-wheeler manufacturing capacity to 11.4 lakh units annually by the second quarter of FY28. The investment aims to address supply constraints, reduce pending orders and meet growing demand across urban and semi-urban markets.
At its manufacturing facility in Hosur, Tamil Nadu, the company plans to increase annual production capacity from 4.2 lakh units to 4.95 lakh units by December 2026. This expansion is expected to add approximately 6,000 units to its monthly production capacity, enabling Ather Energy to improve vehicle availability and streamline deliveries.
Meanwhile, the company’s Factory 3.0 facility in Chhatrapati Sambhajinagar, Maharashtra, is set for a significant capacity enhancement. Annual production capacity at the facility is planned to increase from five lakh units to 6.5 lakh units by Q2 FY28.
The expansion is expected to strengthen Ather Energy’s manufacturing capabilities and improve operational efficiency. Increased production capacity could also help the company manage rising demand and reduce delivery delays.
Additionally, greater in-house battery assembly is expected to improve supply-chain resilience and support cost efficiencies. The investment is likely to strengthen the company’s operating leverage while positioning it to accommodate future growth in India’s electric two-wheeler market.
