Ather Energy Eyes On Production Of Half A Million Units By FY24

Ather Energy's electric scooters

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Ather Energy, backed by Hero MotoCorp is starting manufacturing at its second facility with an eye on the production of half a million units in FY24.

“Supplies have improved all of sudden. From the production of 2,500 units per month, we have hit a capacity of 10,000 units a month within 6-7 weeks,” said Tarun Mehta, Founder and CEO, of Ather Energy. “By the end of the year, we can hit a capacity of 20,000 units before hitting 35,000 units per month run rate next financial year.”

Bajaj Auto, Hero MotoCorp and TVS Motor are the largest two-wheeler companies listed. They have all invested in increasing EV production within their own organizations or backed corporations that specialize in electric mobility. Although electric two-wheelers currently make up less than 2%, this share is growing.

Mehta stated that Ather Energy will become the largest quantity player in the market within a few months.

“We were hit badly at the end of last year. Since then the management has been fixing supply chain issues, whether it’s investing time, capital or bandwidth, we are creating more alternative sources,” Mehta mentioned. “Today, I can say with confidence that we have a good line of sight on sourcing for the next two years on.”

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Ather Energy could be looking to expand the distribution network to 200 shops in the next 12 months from the 50 currently. The growth is expected to fuel demand going forward.

Mehta stated that the company expects the demand story to continue and Ather Energy has already begun wanting for the third facility which will be its largest manufacturing site.

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