'Betting On Future': Ather Energy Eyes 'India's Upgrading Story' To Set Expansion Roadmap
Ather Energy has become India's third largest EV scooter player behind TVS Motor Company and Bajaj Auto. Apart from a rise in sales, its market share has risen from 14% in April to 20% in October.
The two-wheeler EV market has been abuzz this year and the one name that stands out is Ather Energy. The electric two-wheeler giant is eyeing 'India's upgrading story' to fix its near-term expansion roadmap with its consumers continuously 'moving up in prices'. According to co-founder and chief executive officer (CEO) Tarun Mehta, Ather Energy has maintained a stronghold over its 'premium segment' compared to other players.
In an exclusive interaction with NDTV Profit, Mehta said that the company seeks to 'bet on the future' and less on the premium segment, which is already driving profitability. For its expansion, Ather Energy also plans to reach 700 stories by the end of 2025-26. Sales have reached nearly Rs 1.39 lakh units.
Ather Energy's Geographical Breakdown
The Bengaluru-based E2W giant has become India's third largest electric vehicle (EV) scooter player behind TVS Motor Company and Bajaj Auto. Apart from a rise in sales, Ather Energy's market share has risen from 14% in April to 20% in October, as per VAHAN data. The market share in South India remains strong at 25%.
"The biggest gain for us was going to happen by store expansion. We've been very disciplined with our network and store count which had to expand with the right product portfolio. With Rizta launching last year, we've been able to grow our network substantially," said Mehta.
Ather Energy roughly had 250 stores in Dec. and by the end of Q2, it had expanded to about 550 stores. "So that store expansion is what's really driving our market share gains. We've seen gains across every single zone, including south, west, central, north, and east India," he added.
"We've maintained our leadership in the south. In October, we were at the top spot in every single state across the southern market. What's exciting is how the western and central market have been shaping up for us," claimed Mehta. It eyes middle India market as the next growth trigger.
According to the CEO, in Gujarat, Ather Energy consistently has about 25% market share. "This was a market which are notoriously hard for us to crack. We were stuck at 4-5% market share last year before the launch of our family scooter Rizta. Now we're about 25%," he explained.
Madhya Pradesh and Maharashtra have been ''fantastic growth stories'' for Ather Energy. "Now that this belt is delivering great results, we're shifting focus and expanding the network to north and east in the coming months. There's a lot of compounding and growth opportunities still left to tap and huge potential in the country right now for us," Mehta told NDTV Profit.
Ather Energy's Expansion Roadmap
According to the co-founder, Ather Energy has approached the market very differently, starting from the very top and expanding its addressable market with every passing year. "We believe that's the right way for any new technology. It should start right at the top of the pyramid and then permeate through the levels," said Mehta.
"I think, its also fantastic for a consumer brand to build a phenomenal amount of love and trust there and then go across the country. The fundamental thesis for us is that we believe in the upgrading story of India.
"The Indian consumer is going to move up in prices which we have seen consistently seen over the last few years. The sales of 125cc scooters have been on a fast track growth within petrol. Within electric, the share of scooters prices over Rs 1 lakh is the highest," Mehta told NDTV Profit.
This is why even as Ather Energy has expanded its market by launching cheaper models, it has consistently been able to maintain almost a 15-20% premium to most other players. "The premium doesn't exist because we want to operate in the top sliver of the market. It exists because the market is moving up contrary to other players," said the CEO.
"Consumers are upgrading and the opportunity is to be the brand of choice for these buyers in the coming years. Think less as premium and more as betting on future," said Mehta on the company's goal. Ather Energy is one of the top performing IPOs this year currently trading over 107.6% higher from its listing levels.
