Because the nation’s main EV-only scooter maker, Ather’s profitable growth may supercharge India’s shift away from fossil fuels, and assist obtain the federal government’s purpose of lowering air air pollution, whereas additionally constructing a market presence internationally.
In mid-2024 Ather launched the Ather Rizta, a spacious household scooter with a big seat, extra storage, and quick charging, which bought over 100,000 models inside a yr of its launch. To catch as much as well-capitalized rivals, equivalent to Ola Electrical, Ather is spending $105 million to construct a 3rd manufacturing facility that goals to provide 500,000 two-wheelers a yr by March 2027. It has additionally expanded its charging community to some 4,000 charging factors and has pushed into newer markets, together with Nepal and Sri Lanka.
Caveats
Previously 5 years, pushed by state and federal incentives, electrical automobile competitors turned fierce in India. Automobile and scooter makers raced to seize the market, together with legacy automakers TVS Motor and Bajaj Auto. Each have since zoomed previous Ather, promoting cheaper e-scooters and scaling sooner, by leveraging their sprawling retail presence. Collectively, they’ve cornered a mixed share of 40% of India’s e-scooter market.
In the meantime, EV adoption has grown extra slowly in India than anticipated. Indian EV gross sales had been 7.6% in 2024, far off tempo of hitting the federal government’s goal of 30% by 2030.
For Ather to have an actual influence on India’s transport emissions, it should scale considerably. The corporate is working to double its retail footprint to 700 shops and proceed its growth into smaller cities. However geopolitics may intervene: China’s retaliatory export ban on essential uncommon earth minerals in response to US tariffs introduced in April brought on a ripple impact; Ather mentioned in August that it has discovered it onerous to safe the magnets it wants for its motors.
Subsequent steps
Because the Indian authorities rolls again subsidies that slashed the price of buying an electrical scooter, Ather plans to launch cheaper choices. In mid-2024, it started transitioning to a more recent battery chemistry referred to as lithium-iron phosphate (LFP) that has decrease environmental impacts, requires fewer costly minerals, and must be about 20% cheaper than different battery packs.
The corporate isn’t worthwhile, however its gross revenue per automobile has been bettering. Momentum appears to be constructing—in Could, Ather reported its annual gross sales to March 2025 had been up 42 p.c in comparison with the yr prior. Now, the corporate is betting that investing additional into product innovation will assist it take the lead in India’s two-wheeler revolution.
