Ather Energy Inks MoU With TN To Establish Manufacturing Facility In Hosur

Ather Energy Inks MoU TN Tamil Nadu Establish Set Up Electric Vehicle EV Manufacturing Facility Hosur Scale Up Production Expansion

The new manufacturing facility will help Ather Energy to scale up production of its electric scooter, in line with its plans to expand to 30 cities in the next few years

Ather Energy announced it has signed a Memorandum of Understanding (MoU) with the Government of Tamil Nadu for a new electric vehicle manufacturing facility, at the Investment and Skill Development Conclave. This agreement is to set up a 400,000 sq ft manufacturing facility in Hosur, Tamil Nadu, for its electric scooter, and is supported under the government of Tamil Nadu’s EV Policy. This MoU comes on the heels of a push for electric two-wheelers by State and Central Governments with an updated FAME policy, GST reduction, and benefits for taxpayers on loans, noted Ather Energy.

The new Ather Energy facility will not only cater to the manufacturing demand for its electric scooter, but also for the company’s lithium-ion battery manufacturing - a key area of focus for the company going ahead. The investment is an opportunity for value creation in the sector and will create job opportunities for the region, the company said. It added that over 4,000 employees will be trained in requisite skills in the EV sector as a part of this initiative over the next five years.

Besides manufacturing its electric scooter Ather 450, the company has also been investing in setting up fast-charging infrastructure in Bengaluru and Chennai. It currently has ten fast-charging points in Chennai. Post the success in the two cities, Ather Energy said it is gearing up to launch in Hyderabad, Pune, Delhi and Mumbai in the coming year.

Tarun Mehta, CEO, Ather Energy, said the company is rapidly scaling up and needs to expand its production capacity to meet the growing demand for its electric scooter. The new unit will help meet the demand for the next few years across the country, he added. Mehta noted that Tamil Nadu has been a hub for automobile manufacturing, and has been working closely with Ather Energy in their effort to build an EV ecosystem. “A manufacturing facility at Hosur was an ideal choice considering that, it is close to our R&D facilities in Bengaluru and most of the existing and potential future supply base is operating in the region. The availability of a built-up option of our desired scale and proximity helped in the decision making,” he added.