Ather is close to finishing negotiations to establish a new facility with an annual capacity of roughly 1 million electric vehicles with the state governments of Gujarat, Tamil Nadu, Karnataka, or Telangana. As a result, Ather will become the largest EV manufacturer in the nation.
Ather Energy, a leading manufacturer of electric vehicles, increased its output by roughly four times to 4.20 lakh electric vehicles annually through its new facility, which was opened in Hosur, Tamil Nadu, with a total investment of Rs 320 crores. The corporation is increasing production as it prepares to expand into other regions, such as Southeast Asia and Latin America. The adoption of Ather and EVs in general is growing, which is positive thing for Ather Energy.
By the end of FY23, the company will have established a new facility with a capacity of roughly one million electric cars annually, making Ather the largest two-wheeler (2W) EV manufacturer in India. The company is also in the last stages of negotiations with state governments to do so. Ola Electric, a competing company, is rumored to have a capacity of about 20 lakh (two million) electric vehicles. With a production capacity of 10 lakh units per year, Okinava Autotech’s new factory will be completely operational as of October 2023.
In addition to expanding its EV capacity, Ather is boosting its annual battery production capacity from the current level of roughly 1.2 lakh units to 4.3 lakh units. Around Rs 650 crore in total investments are planned over the next five years, of which Rs 320 crore will go toward the current project.
“We are planning to clock sales of around 26,000 to 30,000 units per month by the end of this financial year,” Swapnil Jain, Ather Energy’s cofounder and chief technology officer, told Moneycontrol on the sidelines of the inauguration.
The company currently produces about 550 automobiles per day at a capacity utilization rate of 50%, while having an annual production capacity of 4.2 lakh units. The percentage of installed productive capacity that a manufacturer now uses is known as capacity utilisation.
“The firm had a workforce of around 350 and with the new capacity the workforce has gone up to around 1100 employees,” Jain said.
Jain predicts that with the increased capacity, the waiting time for final consumers will decrease from roughly 4-6 months to 15 days or same-day deliveries. In reality, a vehicle can be made in 40 seconds and the expanded capacity can generate about 1,200 scooters every day.
Ather intends to end the year with an ARR, or Annual Revenue Run Rate, of Rs 2,400 crore. By the end of the current fiscal year, Ather will have increased its grid or power charging capacity to around 1400 units. Currently, the company can support a grid of 600 units.