UP Ahead Of Gujarat In Electric Commutes, Ather Energy’s Valuation Question

The earnings per kilometre are the same for an e-rickshaw and a CNG auto. 

The earnings per kilometre are the same for an e-rickshaw and a CNG auto. 

Essentially, an e-rickshaw has similar range as a CNG auto, but a “refuel” costs a third. Still, Gujarat hasn’t really warmed up to electric mobility but Uttar Pradesh has—in a big way.

In 2024, as many as 40,142 electric autorickshaws were sold in Uttar Pradesh. That figure stood at 1,070 for Gujarat—the EV penetration stood at 53.82% and 1.69%, according to VAHAN data collated and sourced from Clean Mobility Shift. That, when total passenger three-wheeler sales were comparable at 74,581 units in UP and 63,244 units in Gujarat.

What gives?

According to industry watchers, company officials and auto drivers themselves. There are several factors at play when it comes to higher EV adoption in Uttar Pradesh.

1. Regulatory Framework: Gujarat, and as a matter of fact even Maharashtra, was quick to jump onto the CNG bandwagon when the technology first appeared in three-wheelers over two decades ago. The respective state governments pushed for the adoption of cleaner mobility. That wasn’t the case with Northern India, including Uttar Pradesh.

“So, while a Bombay was always been open to CNG, in Uttar Pradesh towns, both ICE and CNG three-wheelers were regulated heavily in terms of the number of units you can sell every month,” Samardeep Subandh, president, intracity business unit at Bajaj Auto Ltd., told NDTV Profit in Lucknow on Tuesday.

“But the demand for (last-mile) commute in a city like Lucknow was exploding with the growth of the city. An electric three-wheeler doesn’t have that regulatory cap. And that’s how this market converted rapidly to EV.”

Subandh’s rationale is spot-on.

The regional transport office in Lucknow has stopped issuing permits to operate CNG autos in the city. At the same time, there is no such commercial permit for e-rickshaws. Meaning, a driver can walk into a showroom, buy the e-rickshaw, get it registered and start ferrying commuters immediately. The process is very similar to how you and I buy cars. 

2. Creature Of Habit: The early-mover advantage that Gujarat enjoyed in CNG-powered last-mile connectivity has translated into the biggest network of CNG fueling stations in India. As of 2023, the state accounted for one out five CNG pumps in India.

The CNG network in Uttar Pradesh is half of what’s in Gujarat.

Essentially, Gujarat’s auto drivers have found it hard to switch to electric mobility, due to easy availability of CNG. Uttar Pradesh had no choice but to.

3. Per Capita Income: According to government data, Gujarat’s per capita income stood at Rs 2.75 lakh in 2023, while that of Uttar Pradesh was less than Rs 1 lakh. Meaning, the auto drivers and commuters in the western state could absorb the higher costs associated with operating a CNG auto better. In Uttar Pradesh, they jumped at the prospect of higher savings with e-rickshaws.

“The total cost of operations of an electric three-wheeler is comparable to the best of ICE. In fact, it’s slightly lower, which is creating this wave of adoption,” Subandh said.

It’s worth mentioning here that Bajaj Auto’s CNG auto-rickshaw costs less than Rs 2.90 lakh, excluding registration and permit charges. The EV variant is priced at Rs 3.25 lakh onwards, but attracts less road tax and even a subsidy.

• Bajaj Auto Goes GoGo: For Bajaj Auto, becoming No.1 in the electric three-wheeler space is only a matter of time.

• Tata Motors’ JLR Plans For India: Tata Motors Ltd. continues to explore ways to optimise the supply chain for making JLR cars in India, according to a company spokesperson, amid reports that the British marquee has shelved plans to make electric vehicles in the world’s third largest car market.

• Mahindra XUV 3XO: The Driver’s Car

Ather Energy Ltd. is eyeing an initial public offering and listing by mid-April at the existing post-money valuation of Rs 14,000 crore (about $1.6 billion), people aware of the matter said on Tuesday.

The updated draft red-herring prospectus will be filed by next week, one of the people cited above said. The red-herring prospectus will come seven days after that, this person said. The size of the IPO is yet unknown.

To be sure, the Ather Energy IPO has been long overdue.

The 450 X maker first filed  its IPO papers in September last year, following a funding round  in August that pegged its valuation at $1.3 billion. At that time, NDTV Profit, on the basis of its own calculations, valued the company at $1.12 billion.

But a lot has changed since then, in terms of sales and market share.

Ather Energy’s sales have risen by more than a fourth year-on-year to 1,15,278 units in the 11 months ended February 2025, according to VAHAN data. A noticeable uptick was seen after deliveries of the Rizta family scooter commenced in the second half of the fiscal. That, according to the people cited above, has allowed for a valuation bump in the IPO.

On March 13, 1969, Herbie—the ‘53’ white Volkswagen Beetle—made its first silver screen appearance with the release of The Love Bug by Disney. This was the last live-action film produced by Walt Disney prior to his death on Dec. 15, 1966.

‘Herbie’ is a sentient 1963 Volkswagen Beetle with a mind of his own and capable of driving himself. He is a legitimate contender, though the underdog, in competitive races, and often helps his owners navigate life. The ‘Herbie’ franchise spawned six films and one TV series.

That’s all from us this week. Watch this space for more.