Ather Energy has allocated approximately Rs. 1.22 billion (US$ 12.8 million), including taxes, to expand manufacturing capacity at its Hosur factory in Tamil Nadu and its under-construction Factory 3.0 in Chhatrapati Sambhajinagar, Maharashtra.

The company's board approved the investment on October 26th, 2026. The expansion is intended to increase manufacturing capacity, address supply constraints and meet business demand as the company expands its retail network. The expansion will increase the combined planned annual production capacity of the two facilities from 920,000 to 1.145 million electric two-wheelers.

Hosur's annual capacity will increase from 420,000 to 495,000 units, adding 75,000 units, while Factory 3.0's planned capacity will rise from 500,000 to 650,000 units, adding 150,000 units.

Hosur factory capacity expansion

Ather Energy has allocated up to Rs. 580 million, including taxes, for the expansion at Hosur. The additional annual capacity of 75,000 units is expected to become operational by December 2026, equivalent to an increase of approximately 6,000 units per month from late 2026.

According to the company's regulatory filing, the Hosur factory operates at 98% capacity utilisation during peak production periods. The investment includes Rs. 530 million for a new battery manufacturing line intended to accommodate varying demand levels and reduce supply-chain risks. The battery line is expected to be completed by the third quarter of FY28.

The Rs. 530 million investment in the battery manufacturing line is included in the Rs. 580 million allocated for the Hosur expansion. The overall investment at the facility will be financed through a combination of debt and internal accruals.

Factory 3.0 capacity to reach 650,000 units annually

At Factory 3.0 in Chhatrapati Sambhajinagar, Maharashtra, Ather Energy plans to increase annual production capacity by 150,000 units, taking the planned total from 500,000 to 650,000 units. The expansion is expected to add approximately 12,000 units of monthly production capacity, with completion scheduled for the second quarter of FY28.

The company has allocated up to Rs. 640 million, including taxes, for the expansion. Factory 3.0 is under construction, and the investment will be financed through a combination of debt and internal accruals.

Once the planned additions are completed, the two facilities will have a combined annual manufacturing capacity of 1.145 million electric two-wheelers. The additional capacity is intended to support higher order volumes across urban and semi-urban markets and address existing supply constraints.

The company also plans to resume retail network expansion at the end of the current quarter to accommodate the increased production capacity.