Ather Energy is planning to increase its monthly manufacturing capacity by 18,000 electric scooters to meet rising demand in India. The Bengaluru-based electric two-wheeler manufacturer will expand production at its Hosur facility in Tamil Nadu and its AURIC Phase 1 plant in Chhatrapati Sambhajinagar, Maharashtra.
The expansion comes as the company experiences strong customer interest, growing pre-orders and increasing sales. However, limited production capacity has prevented Ather from meeting its full retail potential, prompting the company to accelerate its manufacturing plans.
Ather Plans Capacity Expansion at Two Manufacturing Facilities
Ather Energy has approved an additional monthly production capacity of 6,000 units at its Hosur facility and 12,000 units at its AURIC Phase 1 plant. The expansion will add a combined 18,000 units to its monthly manufacturing capacity once both additions become operational.
The Hosur expansion is expected to become operational later in the October–December quarter of FY2027. Meanwhile, AURIC Phase 1 is expected to begin trial production in the coming weeks, with the installation of production equipment targeted for completion by the fourth quarter of FY2027.
The company expects the additional capacity to improve vehicle availability and support its plans to expand its presence across India.
According to Ather Energy CEO Tarun Mehta, the company estimates that it is missing out on approximately 20,000 potential retail sales per month because of capacity constraints at its existing retail network. The planned expansion is intended to address this gap and help the company respond more effectively to customer demand.
Strong Demand Drives Production Growth
Ather Energy recorded significant growth in customer interest during the second quarter of FY2027. Customer enquiries increased by 109% year-on-year to approximately 10 lakh, while pre-orders rose by 108% to around 1.8 lakh during the quarter.
The company’s wholesale volumes reached approximately 93,000 units in the July–September period, while registrations increased to around 92,500 units from approximately 57,000 units in the corresponding period last year.
Production also grew by 45% year-on-year. Ather increased its average monthly manufacturing output from approximately 28,000 units in the first quarter to 33,000 units in the second quarter.
These figures highlight the growing demand for electric two-wheelers and the importance of scaling manufacturing operations to maintain sales momentum.
Ather’s New Scooter Strategy to Expand Market Reach
Ather Energy is also counting on its new Konarc electric scooter to attract a broader customer base. The model is being introduced in phases, initially targeting markets in Uttar Pradesh and Rajasthan.
The company plans to expand the scooter’s availability as additional manufacturing capacity comes online. Mid-level variants are expected to be introduced before the entry-level version, which is planned for launch by the fourth quarter of FY2027. Higher-end variants will follow.
According to the company, the Konarc platform could also improve profitability. Ather expects comparable Konarc variants to deliver gross margins that are approximately 6–7% higher than those of the Rizta in the long term.
Limited vehicle availability had slowed the company’s experience-centre and dealership expansion over the previous two quarters. With production expected to increase, Ather plans to accelerate its retail network expansion, with more significant additions anticipated from the fourth quarter of FY2027.
Ather Energy Reports First Quarterly Profit
Alongside its manufacturing expansion, Ather Energy reported its first-ever quarterly net profit in the second quarter of FY2027.
The company recorded a consolidated net profit of ₹1.26 crore for the quarter ended September 30, 2026, compared with a net loss of ₹154.07 crore in the corresponding quarter of the previous financial year.
Revenue from operations increased by approximately 63% year-on-year to ₹1,464 crore, supported by higher sales volumes and improving demand.
Ather attributed improvements in its gross margins to factors including price adjustments, cost reductions and value engineering. However, rising costs of aluminium, copper, plastics and memory components continue to present challenges.
The company has indicated that revenue and volume growth remain key priorities as it works towards sustainable profitability.
Outlook for India’s Electric Two-Wheeler Market
Ather Energy’s planned capacity expansion reflects the growing opportunities in India’s electric two-wheeler market. Increasing customer enquiries, higher pre-orders and expanding demand beyond traditional strongholds are encouraging manufacturers to invest in production and distribution.
By adding 18,000 units of monthly manufacturing capacity, Ather aims to improve vehicle availability, reduce supply constraints and support the wider rollout of its electric scooter portfolio.
The expansion could also strengthen the company’s competitive position as established automakers and electric-first brands compete for a larger share of India’s rapidly evolving electric mobility market.
With additional manufacturing capacity, new products and an expanding retail network, Ather Energy is positioning itself to capitalise on the next phase of electric two-wheeler adoption in India.
