Electric scooter manufacturer Ather Energy is set to accelerate the launch of new models in India and explore export markets, according to CEO Tarun Mehta. One of the new models will be introduced six months ahead of schedule. The company aims to expand its product lineup to include scooters designed for different family members. Additionally, Ather Energy plans to initiate pilot sales in an Asian export market within the next few months.
Currently, Ather Energy offers two models in its lineup: the 450X and 450S. The company is actively seeking new investments to support the growth of its product line following the government’s reduction in subsidies for battery-powered vehicles. The subsidy reduction, which took effect in May, resulted in a decline in electric vehicle sales, including e-scooters. Despite the decrease, Ather Energy remains optimistic and claims that sales are steadily recovering.
To adapt to the changing landscape, Ather Energy is expediting product launches and increasing investment in product development. The company has set an ambitious long-term goal for over 50% of its sales to come from global markets by the end of the decade.
With a valuation of approximately $750 million, Ather Energy is the third-largest e-scooter manufacturer in India, trailing behind Ola Electric and TVS Motor. The company plans to secure additional funding before the end of 2023 to support its growth plans. Insider sources indicate that Ather Energy aims to raise a similar amount to the $108 million obtained from existing shareholders Hero MotoCorp and Singapore’s sovereign wealth fund GIC through a recent rights issue.
In summary, Ather Energy is focused on introducing new models in India and expanding into international markets. Despite challenges posed by subsidy reductions, the company remains confident in the long-term prospects of the electric vehicle industry. Ather Energy continues to raise capital to fuel its growth and cement its position as a leading player in the e-scooter market.
Sources: HT Auto Desk, IST