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The surge in petrol prices has led to an explosion in the demand for electric vehicles in India. Latest data from the central database for new registrations shows sales of more than 1.7 lakh units in a single month.
The makers of these vehicles may not be prepared for the boom, warns Tarun Mehta, the co-founder and CEO of Ather Energy, a $416 million maker of electric two-wheelers that listed on the stock exchanges in May last year.
"We've crossed 90% utilisation, and will have to try and find ways to go above 100% in the coming weeks!" he added in a post on the microblogging platform X on June 12.
Ather is the third-largest player by market share among electric two-wheeler makers, after TVS Motor and Bajaj Auto. The Bengaluru-based firm sold 2.62 lakh units in the last financial year ended March 2026, up 69% compared to FY25.
A big chunk of the sales took place between January and March, after the war broke out in West Asia, pushing up crude oil prices past $120 a barrel. The stock has gained more than 227% in the last one year.
Now, Ather is rushing to bring its third unit in Chhatrapati Sambhajinagar, Maharashtra, for which it has spent ₹927 crore out of the nearly ₹3,000 crore it raised via the initial public offering last year. “The new factory can't go live fast enough," Mehta added.
EVs make up less than 10% of India's total two-wheeler sales, which crossed 20 million in the financial year ended March 2026. The recent boom in demand may force companies to consider adding capacity, which could take 18 to 24 months to start production.
Read more: How falling crude oil prices can benefit commercial vehicle makers and lenders
The makers of these vehicles may not be prepared for the boom, warns Tarun Mehta, the co-founder and CEO of Ather Energy, a $416 million maker of electric two-wheelers that listed on the stock exchanges in May last year.
"We've crossed 90% utilisation, and will have to try and find ways to go above 100% in the coming weeks!" he added in a post on the microblogging platform X on June 12.
Ather is the third-largest player by market share among electric two-wheeler makers, after TVS Motor and Bajaj Auto. The Bengaluru-based firm sold 2.62 lakh units in the last financial year ended March 2026, up 69% compared to FY25.
A big chunk of the sales took place between January and March, after the war broke out in West Asia, pushing up crude oil prices past $120 a barrel. The stock has gained more than 227% in the last one year.
Now, Ather is rushing to bring its third unit in Chhatrapati Sambhajinagar, Maharashtra, for which it has spent ₹927 crore out of the nearly ₹3,000 crore it raised via the initial public offering last year. “The new factory can't go live fast enough," Mehta added.
EVs make up less than 10% of India's total two-wheeler sales, which crossed 20 million in the financial year ended March 2026. The recent boom in demand may force companies to consider adding capacity, which could take 18 to 24 months to start production.
| Company | Current EV Capacity | Target Capacity | Capex Announced |
| Ola | 1 million units/year | Not disclosed. | ₹2,000 crore |
| Ather Energy | 4.2 lakh units/year | ~14.2 lakh units/year | ₹930 crore |
| Bajaj Auto | 6 lakh units/year | 5 lakh EVs/year | ₹300 crore |
| Hero MotoCorp | 3.3 lakh units/year | ~6.6 lakh units/year by 2027 | ₹1,500 crore |
| TVS Motor | 4.8 lakh units/year | Not disclosed | ₹1,500 crore |
Read more: How falling crude oil prices can benefit commercial vehicle makers and lenders
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