Electric Scooter Startup Ather Energy Doubles Down On Expansion
Ather Energy plans to sell more than 1 lakh scooters by the end of next year, as it doubles down on expansion.
Bengaluru-based electric-scooter startup Ather Energy Pvt. plans to sell more than 1 lakh scooters by the end of 2022, as it doubles down on expansion.
The startup has begin production at its 1,23,000 square feet facility on the outskirts of Hosur in Tamil Nadu boosting its capacity by almost 10 times to more than 9,200 units a month, Tarun Mehta, the company’s co-founder, told BloombergQuint in an interview, adding that they can produce 110,000 scooters and 120,000 battery packs annually.
“By sometime next year we should be able to completely utilise this capacity,” Mehta said. The existing facility can be expanded to produce 3.5 lakh scooters annually, he said, expansion for which will begin next year. The firm has already earmarked about Rs 653 crore for the manufacturing facility.
The company’s biggest expansion comes at a time when electric vehicles are picking up pace, especially in the two-wheeler segment, with even big automakers joining in. Bajaj Auto Ltd. and TVS Motors Ltd. launched electric scooters last year, and Hero MotoCorp Ltd., also an investor in Ather, is working on an EV two-wheeler plan. Besides, ride-hailing firm Ola is also set to launch its first electric scooter in the first half of this year, and set up a facility that can produce two million scooters annually.
Ather declined to comment on the overall sales of its scooters since 2018, but said demand isn’t a concern.
Mehta said the EV story in India is going to be the one where you’re constantly running to keep up with the demand. “Figuring out distribution and supply is going to be challenge, demand is aplenty.”
The firm is eyeing expansion to 41 cities from 27 at present, with more than 300 charging grids, by the year-end.
Watch the full interaction here:
BloombergQuint was at the Ather Energy plant at the invitation and cost of the company