Hero- MotoCorp has invested an amount of 84 crores in India’s Bangalore located electric vehicle startup Ather Energy. The startup was founded by Tarun Mehta and Swapnil Jain in 2013. This funding would be helping out Ather Energy keep an eye on its plan to expand into 20 cities by the end of 2021. The new manufacturing plant will be located in Hosur, in Tamil Nadu
This capital will be an expansion to the Ather’s Series C round. Earlier in may last year the company was able to raise $51 million the majority of which was injected by Flipkart co-founder Sachin Bansal.
“We are in a high growth phase of our journey, and while the last few months have been challenging, we have not altered our expansion plans,” said Tarun Mehta, co-founder, and CEO at Ather Energy. He further added, “we will be using these funds to invest in our facilities to meet the demand we have seen for the Ather 450X across the country.”
Ather has said it will be able to shoot up manufacturing to 100,000 with the help of this investment Also the production can further go up to 500,000 units if the demand escalates.
In a move to expand its base the company is considering moving to only one model for sale. Earlier the company had two models. This will help out Ather in its existence beyond Bengaluru and Chennai.
Ather is optimistic that it will roll out the electric scooter for customers in Hyderabad, Pune, Delhi, and Mumbai in 2020 itself.
Ather although has not commented anything on its aim to manufacture 25000 units till the end of 2019. Because of the coronavirus pandemic, there has been an increase in demand in the Indian EV market like the rest of the automobile market.
Rajat Bhargava, Head of Emerging Mobility Business Unit (EMBU) at Hero MotoCorp said, “We are excited to see the growth of Ather Energy in recent years. We see immense potential for them to expand their market even further, especially given the likely growth of electric vehicles (EVs) in the near future. In addition to our efforts of developing a robust external eco-system for EVs, we are also aggressively working on our internal EV program,”