Ather Energy To Invest ₹122 Crore In Manufacturing Capacity Expansion

Ather Energy plans to raise annual electric two-wheeler production capacity at its Hosur and Chhatrapati Sambhajinagar facilities by a combined 225,000 units, with additions scheduled through FY28.

By Eshisha Java

26 Oct 2026

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Ather Energy To Invest ₹122 Crore In Manufacturing Capacity Expansion

Ather Energy has earmarked approximately ₹122 crore, including taxes, to expand manufacturing capacity at its Hosur factory in Tamil Nadu and its under-construction Factory 3.0 in Chhatrapati Sambhajinagar, Maharashtra.

Approved by the company's board on October 26, 2026, the expansion will increase annual production capacity at Hosur from 420,000 units to 495,000 units. At Factory 3.0, planned annual capacity will rise from 500,000 units to 650,000 units.

The combined planned capacity of the two facilities will increase from 920,000 units to 1.145 million electric two-wheelers annually. The expansion comprises an additional 75,000 units per year at Hosur and 150,000 units at Factory 3.0.

Ather Energy's Hosur capacity expansion

Ather Energy has allocated up to ₹58 crore, including taxes, for the Hosur expansion. The company expects to complete the additional 75,000 units of annual capacity in December 2026.

The Hosur factory operates at 98% utilisation during peak production, according to the company's regulatory filing. The investment will be financed through a combination of debt and internal accruals.

Of the investment earmarked for Hosur, ₹53 crore is allocated to a new battery line intended to address demand scenarios and reduce supply-chain risks. The battery line is expected to be completed by the third quarter of FY28.

Factory 3.0 capacity to reach 650,000 units annually

At Factory 3.0 in Chhatrapati Sambhajinagar, Ather Energy plans to increase annual production capacity by 150,000 units, taking the planned total from 500,000 to 650,000 units.

The company has earmarked up to ₹64 crore, including taxes, for the expansion, which is expected to be completed in the second quarter of FY28. The facility is currently under construction.

The investment will be financed through a combination of debt and internal accruals. Ather has cited the need to scale up long-term manufacturing output to meet business demand as the rationale for the capacity additions.