Ather Energy, India's fourth-largest electric scooter manufacturer, on Wednesday announced plans to set up its third manufacturing facility at Bidkin, AURIC, Chhatrapati Sambhaji Nagar, Maharashtra. This new facility will manufacture both electric two-wheelers and battery packs.

The Bengaluru-based electric vehicle (EV) startup currently has two manufacturing facilities in Hosur, Tamil Nadu, one for battery production and the other for vehicle assembly. The current facilities will continue to manufacture battery packs and vehicles.

The new facility in Maharashtra will enable Ather to get closer to more markets in the country by reducing its logistics costs and speeding up the delivery of its finished products to its customers.

“Maharashtra offers a conducive business environment and continues to be a top destination for investment. This is in line with the vision of our Hon'ble Prime Minister Shri Narendra Modiji to strengthen India's startup and manufacturing ecosystem with an aim to match or surpass global counterparts. We are delighted to have Ather in Maharashtra, cementing the state's position as India's leading automotive and manufacturing hub,” said Devendra Fadnavis, Deputy Chief Minister of Maharashtra.

Ather competes with Ola Electric and established two-wheeler manufacturers such as TVS Motor and Bajaj Auto, all of which have extensive retail networks across the country.

As the demand for electric two-wheelers increases, Ather Energy is focused on increasing its manufacturing capacity, expanding its product portfolio, retail outlets and charging infrastructure across the country. Ather currently has over 200 experience centers and over 1900 fast chargers and Ather Grids across India.

Ather is known for its high-performance scooters on the 450 platform – 450X, 450S and 450 Apex. Ather Energy launched its first family scooter, Rizta, in April.

The announcement came days after Hero MotoCorp pumped another Rs 124 crore into Ather Energy to buy shares from an existing shareholder, securing a stake of up to 2.2%. Hero MotoCorp, India's largest two-wheeler maker, previously owned a 39.7% stake in the startup.

Ather Energy recorded 6,045 vehicle registrations in May, 47% more than the previous month (4,117).

Electric two-wheeler registrations in India hit a low of 65,111 in April against a high of 139,531 in March, before the subsidy amount was cut under the new Rs 500-crore Electric Mobility Promotion Scheme (EMPS). The Faster Adoption and Manufacturing of Electric Vehicles (FAME-II) scheme expired in March this year, leading to a spurt in sales in March as customers rushed to buy electric two-wheelers at cheaper prices. Under the new scheme, which runs for four months till July 31, 2024, the government has reduced the maximum subsidy cap on electric two-wheelers from Rs 22,500 to Rs 10,000 per vehicle.