Ather Energy is planning to open its third unit according to CTO Swapnil Jain
- ByStartupStory | November 24, 2022
Ather Energy the electric scooter startup is in discussions with several state governments to open its third unit. According to Swapnil Jain co-founder and chief technology officer, the company is planning to open a third unit very soon. On Wednesday Ather Energy unveiled its second manufacturing facility at Hosur, Tamil Nadu. The second facility has been built across 300,000 sq ft of land and is capable of increasing the company’s production capacity to 420,000 units in a year. In this facility, a battery manufacturing plant has also been constructed which has the capacity of producing 4,30,000 units.
The company has invested huge chunks of money in manufacturing plants to increase its production capacity. Talking about the huge investments in the plants, Jain said: “We are committed to investing Rs 650 crore over five years in Tamil Nadu of which Rs 620 crore has already been invested.”
Currently, Ather is at 50 percent utilization of its capacity at present and the company promises that it will reach 100 percent utilization by March 2024. At its current rate, they are aiming to reach 65 percent utilization by the end of this financial year.
As of now, the company has two products, the Ather 450X, and the 450 Plus, which are priced at Rs1.5 lakh and Rs 1.27 lakh, respectively. In April of this year, Aether was able to sell 3200 units and in October, Aether reached a staggering number in unit sales by selling 8,213 units. By doing so they registered a 122 percent growth year-on-year. After reaching hitting this record number Jain exuberantly claimed, “October is our best month yet. Within two quarters, sales have grown three times. And as I see it, sales will continue to grow,” said Jain. The company’s sales are growing at a good rate. In FY22 they were able to sell 23,000 units while in FY23 this number surged to 35,000 units. The startup has no plans for slowing down as they are planning to sell 20,000-25,000 units per month by the end of FY23. Aether Energy is leaving no stone unturned in capitalizing on the demand for electric wheeler scooters. Currently, the market penetration has increased from 4-5 percent in 2021 to 14-15 percent.
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