Ather Energy Approves ₹122 Crore Manufacturing Capacity Expansion

Ather Energy Limited, an electric two-wheeler OEM, has approved a capital expenditure (CAPEX) of 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.

The company’s board approved the proposal on October 26, 2026. The expansion will increase the annual electric two-wheeler production capacity at Hosur from 420,000 units to 495,000 units, while the planned capacity at Factory 3.0 will rise from 500,000 units to 650,000 units.

Ather Energy has allocated up to ₹58 crore, including taxes, for the Hosur facility and up to ₹64 crore for Factory 3.0. The investments will be financed through a combination of debt and internal accruals. The company expects the capacity addition at Hosur to be completed by December 2026, while the expansion at Factory 3.0 is expected to be completed in the second quarter of FY2027–28.

Hosur’s existing manufacturing capacity utilisation is reported at 98% during peak production. Of the investment allocated to Hosur, ₹53 crore is earmarked for a new battery line. According to the company, the line is intended to address future demand and reduce supply-chain risks. Its completion is expected by the third quarter of FY2027–28.

As per the company’s regulatory filing, the proposed expansion will add 225,000 units per annum to Ather Energy’s combined planned electric two-wheeler production capacity across the two facilities, taking it to 1.145 million units per annum. The capacity at Factory 3.0 remains under development, and the stated figure represents its planned capacity after the proposed expansion.

Also read: Ather Energy unveils EL, its next-generation scooter platform for multiple segments