Ather Energy has approved a capital expenditure of approximately ₹122 crore, including taxes, to expand manufacturing capacity at its Hosur facility in Tamil Nadu and its under-construction Factory 3.0 in Chhatrapati Sambhajinagar, Maharashtra. The company’s board approved the expansion proposals on October 26, 2026, as part of its plan to scale up long-term manufacturing output to meet business demand.
The expansion will increase the combined annual manufacturing capacity of the two facilities from 920,000 units to 1.145 million electric two-wheelers. At the Hosur factory, annual production capacity will increase from 420,000 units to 495,000 units, adding 75,000 units. At Factory 3.0 in Maharashtra, planned annual capacity will rise from 500,000 units to 650,000 units, adding 150,000 units.
For the Hosur facility, Ather Energy has earmarked up to ₹58 crore, including taxes, for the capacity expansion. The addition of 75,000 units of annual production capacity is expected to be completed in December 2026. According to the company’s regulatory filing, the Hosur factory operates at 98% capacity utilisation during peak production.
The Hosur investment includes ₹53 crore for a new battery manufacturing line. The line is intended to cater to demand scenarios and reduce supply-chain risks, with completion expected by the third quarter of FY28. This ₹53 crore investment is included in the ₹58 crore allocated for Hosur and is not an additional amount over the overall expansion expenditure.
For Factory 3.0 in Chhatrapati Sambhajinagar, Maharashtra, Ather Energy has earmarked up to ₹64 crore, including taxes. The proposed addition of 150,000 units of annual manufacturing capacity is expected to be completed in the second quarter of FY28. The facility is currently under construction, and the investment will be financed through a combination of debt and internal accruals.
The company plans to finance the capacity expansion at both facilities through a combination of debt and internal accruals. Once the proposed additions are completed, the combined annual manufacturing capacity across Hosur and Factory 3.0 is expected to reach 1.145 million electric two-wheelers. The expansion is intended to strengthen Ather Energy’s manufacturing capacity to meet business demand.
