The sources said the company is in the final stages of negotiations and is expected to finalize the location within the next month.
When contacted, a company spokesperson declined to comment on the matter.
According to the sources, the company, which sells two electric scooters – the 450X and 450 Plus – is considering around 100 acres of land to build its third facility in the country.
Ather has a factory in Hosur, Tamil Nadu with a current capacity of 1.2 lakh units per year.
The capacity is expected to reach four lakh units per year with the establishment of a new facility in Hosur, which is expected to be operational later this year.
Last month, Ather Energy raised $128 million (about Rs 991 crore) from the National Investment and Infrastructure Fund (NIIFL) Strategic Opportunities Fund (SOF) and Hero MotoCorp, along with other investors .
The company plans to use the funding to expand its manufacturing facilities, invest in research and development, recharge infrastructure and expand its retail network.
Hero MotoCorp is an early investor in Ather Energy and has been part of its growth story since 2016.
The company currently has a roughly 35% stake in the electric two-wheeler maker.
Ather announced its highest ever monthly sales of 3,807 units in May.
It is currently present in 32 cities with 38 experience centers. It aims to have 150 such centers in 100 cities by 2023.