Ather Energy Plans Third Plant in Aurangabad, Maharashtra

Ather is setting up a new manufacturing facility in Aurangabad, Maharashtra. This marks a significant milestone for the company, and it will be its third plant in India. Ather is strategically positioned to capitalise on the growing demand by expanding its manufacturing capabilities.

An agreement for the new plant is expected to be finalised soon. The facility will be built in phases on a 100-acre site in Chhatrapati Sambhajinagar and will involve an investment of ₹ ₹2000 crore investment, generating employment of around 4000. This move strengthens Ather's manufacturing footprint, adding to its existing assembly and battery plants in Hosur and Tamil Nadu.

Ather not only designs and produces electric scooters but also manages its entire lifecycle – from manufacturing to sales and service. The company additionally plays a key role in developing software solutions for EV charging infrastructure. This expansion comes on the heels of a successful FY24 for Ather Energy. The company reported a revenue of ₹ 1,753.8 crore. Looking ahead, Ather is gearing up for an initial public offering (IPO) in early 2025. The IPO is aimed to raise around $400 million.

Devendra Fadnavis, Deputy Chief Minister, Maharashtra, said, "Maharashtra offers a conducive business environment and continues to be a top destination for investments. This is in line with our honourable PM Shri. Narendra Modiji’s vision to strengthen India’s startup and manufacturing ecosystem, aiming to match or surpass global counterparts. We are happy to have Ather in Maharashtra, solidifying the state’s position as India’s leading automotive and manufacturing hub.”

Mr. Swapnil Jain, Co-founder & CTO at Ather Energy, said, "Since 2021, our facilities in Hosur have been serving as our national manufacturing hub, catering to the demand across the country. With the support of the Tamil Nadu government and a strong supplier base, the existing facilities remain crucial for Ather. With our expanding product portfolio and the increasing consumer demand for our scooters, we decided to strategically diversify our production capabilities to an additional location that will be closer to more markets in the country. The new manufacturing facility will not only rationalise our logistic cost but will also hasten the delivery of finished products to our customers. We are thankful to the Maharashtra government and its policies that foster EV manufacturing and growth.”

Karnataka Sour On Missed Opportunity

However, Ather’s decision to set up shop in Maharashtra has cast a shadow over Karnataka's aspirations to become a leading electric vehicle manufacturing hub. The move has sparked criticism from the state's opposition and raised questions about the government's efforts to retain homegrown companies.

Deputy Leader of Opposition, Arvind Bellad, expressed his disappointment on social media, highlighting the missed opportunity for job creation and economic growth in Karnataka. He pointed towards existing facilities like Tata Marcopolo and Tata Motors in Hubballi-Dharwad, which could have formed a strong manufacturing cluster for electric vehicles. Businessman Mohandas Pai echoed these concerns, suggesting that Karnataka's failure to follow up on its initial EV policy led to the loss of Ather and other electric vehicle companies.

Responding to the criticism, Karnataka Industries Minister MB Patil acknowledged that the state government may not have been proactive enough in securing Ather's new plant. He highlighted that Ather previously requested land in 2022, which was not allocated by the previous administration. Patil assured that the current government is in talks with Ather to explore land options within Karnataka.