IPO-Bound Ather Energy Expands R&D Capacity With A Bigger 'Juggernaut'
As on Dec. 31, Ather Energy’s R&D expenditure stood at Rs 240 crore, or about 15% of revenue from operations, which it claims is the highest among EV peers.
Ather Energy Ltd. has expanded its research and development capabilities ahead of an initial public offering to future-proof its electric scooters.
Spread over nearly 40,000 square feet, ‘The Juggernaut’ in Belur, Bengaluru “is key to Ather’s R&D ecosystem designed to ensure the quality, reliability and performance of its scooters, while accelerating product development, testing and validation”, according to a company statement on Thursday.
“EVs are radically different from ICE vehicles and are a relatively new technology, so it is important to thoroughly test all the components of the vehicle,” Ather Energy’s co-founder Swapnil Jain said. “With the expansion of The Juggernaut, we are scaling up our testing capacity and capabilities, enabling us to accelerate innovation and product development, while maintaining our focus on performance, quality and reliability.”
For example, Ather Energy’s battery pack undergoes 272 tests before being commissioned for an electric scooter. The so-called 4DOF Road Simulator, the only of its kind in India, simulates real-world riding conditions for an endurance run of 100,000 km in 15 days.
The company refused to disclose the cost incurred for the expansion since it’s not cited in the draft red-herring prospectus.
To be sure, R&D is a large—but necessary—expense for the electric two-wheeler maker backed by Hero MotoCorp Ltd. Nearly all of its hardware and software is designed and developed in-house.
As of Dec. 31, 2024, Ather Energy had incurred a total R&D expenditure of Rs 240 crore, or about 15% of its revenue from operations, which it claims was the highest among peers. A total of 4,535 unique tests across hardware and software have been conducted so far to validate its electric scooters. Nearly 50% of its 1,700-strong workforce is involved in R&D.
The company boasts of 304 registered trademarks, 200 registered designs and 45 patents. Applications for 11 designs, 103 trademarks and 281 patents are pending.
Ather Energy, at present, has three R&D facilities in Bengaluru, whereas its electric scooters are tested for manufacturing in Hosur, Tamil Nadu. A new plant is set to be commissioned in Sambhaji Nagar, Maharashtra. The firm currently sells two electric scooters—Ather 450X and Rizta—while an electric motorcycle is under development.
