Ather will add a further 2.25 lakh units of annual production capacity across its Hosur and
AURIC facilities, taking combined installed annual capacity to approximately 11.4 lakh units by Q2 FY28.
The Hosur plant’s current capacity is 420,000 units per annum and capacity utilization is 98 per cent at peak production. The company plans to add 75,000 units per annum to the existing capacity. The Hosur capacity will increase from 4.2 lakh to 4.95 lakh units.
The Hosur Capacity addition is expected to be completed in December, 2026. The company will invest Rs 58 crore for the expansion, according to stock exchange filing. Â The investment includes an investment of Rs 53 crore in a new battery line to cater to demand scenarios and to de-risk supply chain. This is expected to be completed by Q3 FY28, it said.
Ather will add 150,000 units per annum capacity in its under construction plant in Chhatrapati Sambhajinagar. The existing capacity planned was 500,000 units per annum. The capacity addition is expected to be completed in Q2 FY28. The company will invest Rs 64 crore for the expansion.
Ather’s new facility in AURIC, Chhatrapati Sambhajinagar, is on track to begin commercial production in phases from December 2026, with Phase 1 having an annual production capacity of 5 lakh units. Ather will further expand the plant’s annual capacity by 1.5 lakh units to 6.5 lakh units, with the additional capacity expected to commence production by Q2 FY28.
Ather will invest approximately Rs 122 crore across the two facilities to support these capacity enhancements.
The company said the rationale for the expansion is to scale up long-term manufacturing output to meet the business demand. It will be funded through combination of debt and internal accruals.
Ather announced the capacity expansion plans along with its second quarter results.
“We delivered a strong quarter, with robust topline growth and a positive bottomline, despite surging commodity prices and supply chain disruptions. Underpinning this is a shift to electric two-wheelers that is now structural and playing out across India. At Ather, demand has more than doubled year-on-year this quarter, and to meet it, we are further augmenting our production capacity at Hosur and AURIC. With Konarc taking Ather to a wider set of customers, we see significant headroom for growth ahead,” Tarun Mehta, Co-founder & CEO, Ather Energy, said.