Indian electric scooter manufacturer Ather Energy is gearing up for an ambitious expansion strategy. Despite changes in government subsidies affecting the electric vehicle (EV) market, Ather Energy is committed to growth, with plans to introduce new models and explore export markets.

Shifting Subsidy Dynamics

The Indian electric scooter market is on an upward trajectory, with e-models constituting 5 percent of total scooter and motorcycle sales in the last fiscal year. However, this growth faced a hurdle when the government unexpectedly reduced cash incentives on EVs from 40 percent to a maximum of 15 percent before taxes in May. Subsequently, e-scooter sales declined by over 50 percent the following month.

Ather Energy's Response

Ather Energy also experienced a drop in sales but is swiftly rebounding. CEO Tarun Mehta revealed that the company is now expediting the launch of two new models, one of which will hit the market six months ahead of the initial schedule. This strategic shift aims to mitigate the impact of subsidy changes and invest more in product development.

Mehta envisions more than 50 percent of Ather's sales coming from global markets by the end of the century as part of their long-term growth strategy. Currently, Ather is India's third-largest e-scooter manufacturer, trailing Ola Electric and TVS Motor.

Future Product Offerings

Ather intends to broaden its product lineup by introducing a family-oriented scooter in addition to its existing models designed for individual riders.

Funding Expansion

To support its expansion efforts, Ather Energy plans to secure additional funding before the close of 2023. While specific details were not disclosed, the company aims to raise an amount akin to the $108 million obtained from existing shareholders Hero MotoCorp and Singapore's sovereign wealth fund GIC in a recent rights issue.

Global Ambitions

Ather Energy will soon test the waters in an Asian export market with a pilot sales initiative. Despite subsidy challenges, Mehta believes that India has the potential to become not only the world's largest market for electric two-wheelers but also the largest exporter.

In a dynamic EV landscape, Ather Energy remains committed to innovation, expansion, and sustainability, reflecting the broader shift towards electric mobility in India and beyond. Stay tuned for updates as Ather Energy continues to navigate this evolving market.