Electric two-wheeler manufacturer Ather Energy has revealed plans to establish a new production facility in Maharashtra. Ather Energy’s new manufacturing facility in Maharashtra will be a part of the company’s investment of over INR 2,000 crore ($245 million), which will be located within the Aurangabad Industrial City (AURIC) in Bidkin.
According to Maharashtra Deputy Chief Minister Devendra Fadnavis, the new plant is expected to generate around 4,000 jobs. It will have the capacity to annually produce up to 1 million electric two-wheelers and battery packs.
Ather Energy currently operates two manufacturing facilities in Hosur, Tamil Nadu. One plant is dedicated to battery production with a capacity of 430,000 units per year, while the other handles vehicle assembly with a 420,000-unit annual capability.
The addition of Ather Energy’s new manufacturing facility in Maharashtra will allow Ather to expand its market reach and accelerate product delivery across the country, the company said. Ather’s Co-founder and CTO Swapnil Jain stated that the new facility will help rationalize logistics costs and bring products closer to more regions.
Ather’s current product lineup includes the high-performance 450X and 450S scooters, as well as the recently introduced family-oriented Rizta model. The company’s co-founder and CEO, Tarun Mehta, said Ather is aggressively expanding its portfolio and retail presence, especially in northern markets.
Ather Energy‘s new manufacturing facility in Maharashtra will complement Ather’s existing manufacturing hub in Tamil Nadu and its headquarters in Karnataka, which houses over 1,300 employees and three R&D centers.
However, the news is of great political significance as Ather is a Bengaluru-based start-up and the company was to start the plant in the home state only. However, Karnataka Industries Minister MB Patil has alleged that Ather decided to change the idea of setting up the manufacturing plant as the previous BJP government led by Basavaraj Bommai, had mishandled the land allocation.
He added, “The investor got irritated and returned the entire land parcel to the government and decided to move to Maharashtra, influenced also by other factors.” The minister also stated that Ather had initially sought 50 acres of land but was only allotted 35 acres, a portion of which was caught in legal disputes.
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