Bengaluru-based electric two-wheeler company Ather Energy is in the process of boosting its production capacity by establishing a new manufacturing facility, according to a top company executive.
The company is currently in discussions with several State governments to determine the location for this facility; however, the new facility will certainly be situated outside of Tamil Nadu and Hosur, where Ather already has a manufacturing presence, Ravneet Phokela, the Chief Business Officer, told businessline. It can generate 420,000 units per year with both facilities together.
In addition, the company has been planning to launch new products along with market expansion.
International expansion
While the demand for electric vehicles within the domestic market remains substantial, the EV manufacturer is poised to make its international debut with an official announcement soon.
“International is very much part of our plans. But international expansion typically starts paying off the scale in about four to five years. If we have to get dividends five years from now, we have to start investing today. We might make an announcement as early as the next couple of months for the first market.”
- Also Read: Ather ready with new models
Based on the company’s thorough analysis of overseas markets, they have identified substantial demand coming from three key clusters: Southeast Asia, Latin America, and the European market.
Although the specific details of the first market were not revealed, the Chief Business Officer noted, “At present, our focus is on entering the market which is easy.”
Revenue Surge
The EV maker’s revenue from operations surged 4.4X to ₹1,783 crore from ₹408 crore in FY22. Meanwhile, it reported a loss of ₹864.5 crore in FY23, against a loss of ₹344.1 crore in FY22, according to its annual financial statements filed with the Registrars of Companies (ROC).
The Bengaluru-based start up is one of the dominant players in India’s electric two-wheeler market, which is currently led by four major companies: Ola Electric, Bajaj, TVS, and Ather. Together, these companies control 80 per cent of the market, with Ather holding a 13–15 per cent market share.
Further, the company recently secured fresh funding of ₹900 crore from Hero MotoCorp and GIC. These funds will be utilised for new product launches, the expansion of charging infrastructure, and the growth of the retail network.
“We are present in 100 cities and about 150 experience centres, which should go up to 130–150 cities and 180 experience centres by the end of this financial year. These are all dealer stores,” he added.