‘Disappointed to see Karnataka company open 3rd plant in Maharashtra’: State govt criticised as Ather expands

Karnataka's aspiration to become a leading EV manufacturing hub is under threat. The electric scooter manufacturer Ather Energy is planning to select Aurangabad, Maharashtra, as the location for its third plant. This has sparked criticism from the opposition and raised questions about the state government's efforts to retain homegrown companies.

Deputy Leader of Opposition, Arvind Bellad, took to Twitter to express his disappointment: "It's disappointing to see a #Karnataka-based firm like Ather Energy planning to set up its 3rd plant in Maharashtra instead of Karnataka... #Hubballi #Dharwad, with existing facilities like Tata Marcopolo, @TataMotors etc can become a manufacturing cluster. Let's not miss this opportunity for job creation and economic growth in Karnataka."

Echoing Bellad's concerns, prominent businessman and investor Mohandas Pai tweeted: “Very true. Ather, Ola, Kaynes are Karnataka cos which relocated because of failed outreach, Karnataka created the first EV policy, failed to follow up, lost the EV industry.”

Responding to the criticism, Karnataka Industries Minister MB Patil told India Today, "Ather in 2022 asked 50 acres, [the] BJP back then didn’t give them 50 acres. So it was BJP’s mistake. I’m trying to revive, I’m talking to them saying we’ll give land.”

Ather Energy's new factory, expected to be spread over 100 acres in Bidkin town near Aurangabad, will be constructed in phases with an investment of Rs 1,000 crore. The company currently operates two plants in Hosur, Tamil Nadu, focusing on assembly and battery production.

The move to Maharashtra comes at a time when Ather Energy is experiencing significant growth, reporting revenue of Rs 1,753.8 crore in FY24. The company recently secured a strategic investment of Rs 124 crore from Hero MotoCorp, which acquired a 2.2 percent stake.

Ather Energy has declined to comment on this.