Ather Energy has signed a Memorandum of Understanding with the Tamil Nadu government to set up an electric vehicle and lithium ion battery manufacturing facility in Hosur, which is close to Bengaluru. The new facility will come up in an area of 400,000 sq ft.
Ather Energy has already announced its plans to expand to 30 cities in the next few years and this MoU will help scale up production plans for the same, said the company. The factory will be supported by state government's recently released EV policy. The project is also expected to get support from state and central governments' measures including the updated FAME policy, GST reduction, and benefits for taxpayers on loans for electric two-wheeler purchase.
Lithium-ion battery manufacturing is a key area of focus for the company going ahead. More than 4000 employees will be trained in requisite skills in the EV sector as a part of this initiative over the next five years, it said. The company has also been investing in setting up fast-charging infrastructure in Bengaluru and Chennai. The company is planning to launch its products in Hyderabad, Pune, Delhi and Mumbai in the coming year.
Tarun Mehta, chief executive officer, Ather Energy, said, "Ather is rapidly scaling up and we need to expand our production capacity to meet the growing demand. The new unit will help us meet the demand for the next few years across the country. Tamil Nadu has been a hub for automobile manufacturing, and they have been working closely with us in their effort to build an EV ecosystem."
A manufacturing facility at Hosur was an ideal choice considering that it is close to its R&D facilities in Bengaluru and most of the existing and potential future supply base is operating in the region. The availability of a built-up option of its desired scale and proximity helped in the decision making, it said.