Ather Energy has announced board approval for a capital expenditure of approximately ₹122 crore to enhance its manufacturing capabilities. This investment will increase the annual production capacity of electric two-wheelers at its Hosur factory and its upcoming Factory 3.0 in Chhatrapati Sambhajinagar. The expansion aims to meet growing demand for its products and strengthen its supply chain.
Ather Energy Boosts Production Capacity
Ather Energy Limited announced today that its Board of Directors has approved significant proposals for the enhancement of its manufacturing capacity. The company plans to invest approximately ₹122 crore (including taxes) in capital expenditure (CAPEX) to bolster production at its existing factory in Hosur, Tamil Nadu, and its new Factory 3.0, currently under construction in Chhatrapati Sambhajinagar, Maharashtra.
Capacity Enhancements and Investment Details
The planned expansion will see the annual production capacity of electric two-wheelers at the Hosur factory increase from 420,000 units to 495,000 units. Concurrently, Factory 3.0’s annual production capacity is set to grow from 500,000 units to 650,000 units.
Specifically for the Hosur factory, an investment of up to ₹58 crore (incl tax) is earmarked. An additional up to ₹64 crore (incl tax) will be invested in Factory 3.0. The investment in Factory 3.0 includes ₹53 crore for a new battery line, aimed at meeting demand scenarios and de-risking the supply chain, with this battery line expected to be completed by Q3 FY28.
Expansion Timeline
The capacity addition at the Hosur factory is anticipated to be completed by December 2026. For Factory 3.0, the capacity expansion is expected to be completed in the second quarter of FY28.
The financing for this expansion will be a combination of debt and internal accruals. The rationale behind this strategic move is to scale up long-term manufacturing output to meet the projected business demand.
Source: BSE
