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Ather Energy aims to expedite capacity expansion as EV demand outstrips supply
Samira Vishwas | August 4, 2026 6:24 PM CST

Ather Energy, the key electric two-wheeler manufacturer that has been giving tough competition to the legacy players in the Indian two-wheeler market, is planning to expedite its capacity expansion as high demand has been outstripping supply. The EV manufacturer recorded 83,173 units of wholesale in the first quarter of FY27, marking an 81% year-on-year (Yoy) growth over 46,078 units registered in the same period of last fiscal.

The manufacturer of popular products like the 450 series of electric scooters, as well as Ather Rizta, has revealed that it recorded a whopping 95% YoY growth in customer enquiries in Q1 FY27, while the paid pre-orders surged massively by 185% to 1.5 lakh units during the period. While the demand uptick was significant, the production was not adequate to meet this surge. According to the EV maker, it could have sold an additional 13,000-15,000 electric scooters every month, had the production number been adequate.

To address this demand-supply gap, the company is commissioning a new manufacturing facility in Aurangabad, which will ramp up the production capacity from 4.2 lakh units to 9.2 lakh units after the first phase of the plant is operational later this year. Once the second phase is complete, Ather could ramp up the total production capacity to 14.2 lakh units annually. The company has also hinted at possibilities of fast-tracking the second phase of the plant, if the current demand trajectory continues.

Ather Energy has reported a surge in revenue in Q1 FY27. Revenue surged by about 90% to 1,217 crore, while expenses rose 54%. The company’s EBITDA margin improved to 0.8% last quarter from negative 15.7% a year ago. The conflict in West Asia disrupted crude oil supplies, driving up plastics and polymers costs, ramping up its input costs. However, strong demand for its Rizta scooter helped the brand to cushion the impact of higher costs.

Speaking on the quarterly performance of the company, Ather Energy Co-founder & CEO, Tarun Mehta, said, “We continued to see strong demand across our portfolio, as structural tailwinds from both policy support and shifting customer sentiment translated into a massive upsurge for our products, with demand far outstripping supply.” He further added, “This gives us confidence that the market continues to expand. In the coming months, we are particularly excited about our new product on the EL platform, commencing production alongside the scale-up of our new factory at AURIC (in Maharashtra). Together, they position us well for the next phase of Ather’s growth.”

Ather Energy also stated that it is continuing to expand the brand’s retail and charging infrastructure in Tier-2 and Tier-3 cities across India, a strategy helping boost sales volumes and improve operating leverage. However, the company continues to face pricing and market share pressure from key rivals including Ola Electric, TVS Motor Company, and Bajaj Auto. Meanwhile, Ather Energy is preparing to unveil its first production scooter on the all-new EL platform on August 29 at Ather Community Day 2026.


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