Indian electric two-wheeler manufacturer, Ather Energy, has commenced operations from its facility in Hosur, Tamil Nadu.

Ather has also started deliveries in Mumbai, Pune, Ahmedabad, Bangalore, Chennai, and Hyderabad, and more deliveries are planned in a phased manner across 21 other cities by the first quarter. Ather Energy is likely to expand to 40 cities by the end of 2021. Ather Energy has confirmed deliveries and presence across 27 cities in 15 states.

The company said that the facility is in line with the Make in India initiative’s vision, with 90% of components of Ather Energy’s vehicles and the battery packs being manufactured locally.

The Ather 450X and the Ather 450 Plus models are completely Made in India and designed in Bengaluru.

With a capacity to produce 110,000 scooters annually, the facility will serve as Ather’s national manufacturing hub. The investment will create job opportunities in the region, and more than 4000 employees will be trained for the electric vehicles (EV) sector over the next five years.

Ather Energy had announced in 2019 that it had signed a memorandum of understanding  with the Tamil Nadu government to set up a 400,000 square feet two-wheeled electric vehicle and lithium-ion battery manufacturing facility at Hosur.

The facility can produce 120,000 battery packs annually. Ather Energy claims that it is the only EV original equipment manufacturer in India to make its battery packs and has filed 13 patents on the design and manufacturing of Li-ion batteries.

Last November, the company had raised $35 million in its Series D funding round, led by Sachin Bansal’s $23 million investment. Hero MotoCorp has invested $12 million as a part of the funding round. In 2014, Flipkart co-founder Sachin Bansal was one of the first angel investors who invested $500,000 in Ather. In the last six years, Bansal has invested $53 million in the e-mobility startup.

Tarun Mehta, CEO and co-founder of Ather Energy, said, “The opening of this facility is truly a milestone for Ather. The consumer demand has increased by multiple folds, and with us expanding to new markets, this state-of-the-art facility will cater to demand across the country. We are proud that we designed and built a product from scratch, which aligns with the government’s Make in India vision. We are thankful to the Tamil Nadu government and their EV policies, which have allowed us to have most of our supplier base in the State, making us self-reliant.”

Rahul is a staff reporter at Mercom India. Before entering the world of renewables, Rahul was head of the Gujarat bureau for The Quint. He has also worked for DNA Ahmedabad and Ahmedabad Mirror. Hailing from a banking and finance background, Rahul has also worked for JP Morgan Chase and State Bank of India. More articles from Rahul Nair.