Ather plugs into Maharashtra to roll out 1 million e2Ws every year

To bet Rs 1K cr on Aurangabad plant; capacity will hit 1.42 mn

Electric scooter maker Ather Energy, based in Bengaluru, has chosen Aurangabad (formally renamed Chhatrapati Sambhajinagar)in Maharashtra for its third plant, which will have the capacity to produce 1 million two-wheelers per annum.

An agreement with the state government is expected to be signed soon, according to sources.

A spokesperson for Ather Energy, however, declined to comment on the matter.

The company has firmed up plans to invest Rs 1,000 crore in the plant in phases, which will span 100 acres.

The plant will be located in Aurangabad Industrial City (abbreviated as Auric) in the town of Bidkin, part of the greenfield industrial smart city covering over 10,000 acres and strategically positioned along the Delhi-Mumbai Industrial Corridor project.

With plug-and-play infrastructure, 60 per cent of the land will be dedicated to electronics, engineering, textile, food, and defence production, while the remainder will be for commercial and residential purposes.

The proposed plant will be Ather’s third unit. The other two, which include a vehicle assembly plant and a battery plant, are located in Hosur, Tamil Nadu. The assembly plant can produce 420,000 electric two-wheelers per annum.

Ather had been scouting for a new location, considering Gujarat, Karnataka, and Tamil Nadu before deciding on Maharashtra. Sources indicate that this will aid in the logistics of distributing electric vehicles to key markets like Maharashtra, Gujarat, and even northern regions due to the corridor.

Aurangabad has been a hub of the automotive industry for many decades, with Bajaj Auto and Škoda already having their units around Auric. Bajaj’s electric vehicle plant is also located in Chakan, Maharashtra.

Other key players in the industry include TVS Motor Company, which has its electric scooter factory in Hosur, and Greaves Electric Mobility, with its unit in Ranipet, Tamil Nadu.

The expansion comes close on the heels of the company raising funds in quick succession as it moves towards an initial public offering (IPO), expected by the end of this year or early next year. The company plans to file its draft red herring prospectus with the Securities and Exchange Board of India in a few months.

Ather has already initiated the process of raising another Rs 1,000 crore before the IPO. While the size of the IPO has not been finalised, it is expected to be between $400 million and $500 million.

The fourth-largest electric vehicle player in India, after Ola, TVS, and Bajaj, Ather saw its registrations in May increase by 39 per cent, a trend expected to continue as it begins delivering its new electric family scooters. In 2023-24, the company sold over 108,000 electric scooters, capturing a 12-13 per cent market share.