Ather Ramps Up Capacity As Demand Pushes Utilisation Close to Limits

Ather Energy is speeding up the commissioning of its third manufacturing facility in Chhatrapati Sambhajinagar, in Maharashtra, as rising demand pushes existing capacity close to its limits. The company has already deployed ₹927 crore towards the project from the nearly ₹3,000 crore raised through its initial public offering last year.

"There was a lot of concern when we had filed the DRHP as to why we are investing in additional capacity already. Back then, we were at 30-40% utilization, and investing in capacity which would 2x or 3x that, seemed like a crazy idea," Tarun Mehta, co-founder and CEO of Ather Energy posted on X on Friday.

Mehta indicated that the company’s current facilities are operating at high utilisation levels. 

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"Fast forward to today: we've crossed 90% utilization and will have to try and find ways to go above 100% in the coming weeks! The new factory can't go live fast enough! Excited about Factory 3.0 at Chhatrapati Sambhajinagar now,"  Mehta added.

Ather is currently the third-largest electric two-wheeler manufacturer in India by market share, behind TVS Motor Company and Bajaj Auto. 

The Bengaluru-based company reported sales of 2.62 lakh units in the financial year ended March 2026, marking a 69 per cent increase compared with the previous year.

A significant portion of these sales was recorded in the January–March period, coinciding with a surge in crude oil prices following geopolitical tensions in West Asia, which pushed prices above $120 per barrel.