Ather Energy has earmarked ₹122 crore, including taxes, to expand its electric two-wheeler manufacturing capacity at its Hosur facility in Tamil Nadu and its upcoming Factory 3.0 in Chhatrapati Sambhajinagar, Maharashtra. The expansion will add 225,000 units to its combined annual production capacity, with completion scheduled in phases through FY28.
The investment was approved by the company’s board on October 26, 2026, as Ather looks to strengthen manufacturing capabilities and meet rising business demand.
Combined Production Capacity to Reach 1.145 Million Units
Following the planned expansion, Ather Energy’s combined annual manufacturing capacity across the two facilities will increase from 920,000 units to 1.145 million units.
Key capacity additions include:
- Hosur, Tamil Nadu: Capacity will rise from 420,000 to 495,000 units annually.
- Factory 3.0, Maharashtra: Planned capacity will increase from 500,000 to 650,000 units annually.
- Total expansion: An additional 225,000 electric two-wheelers per year.
₹58 Crore Investment Planned for Hosur Facility
Ather has allocated up to ₹58 crore, including taxes, for the Hosur expansion, which will add 75,000 units of annual capacity by December 2026.
The factory currently operates at 98% utilisation during peak production. Of the allocated investment, ₹53 crore will support a new battery manufacturing line to address demand and reduce supply-chain risks. The battery line is expected to be completed in the third quarter of FY28.
The investment will be funded through a combination of debt and internal accruals.
Factory 3.0 to Receive ₹64 Crore Investment
At its under-construction Factory 3.0 in Chhatrapati Sambhajinagar, Ather plans to invest up to ₹64 crore to increase annual capacity by 150,000 units. The expansion is expected to be completed in the second quarter of FY28.
The capacity additions will strengthen Ather Energy’s manufacturing infrastructure, improve production readiness and support its long-term growth in India’s electric two-wheeler market.
