Policy Predictability Essential for Accelerating Electric Mobility: Ather Energy

Ather Energy, the electric two-wheeler maker, emphasizes the need for policy predictability to attract investments in the electric vehicle (EV) sector. The Chief Business Officer of Ather Energy, Ravneet S Phokela, suggests that policy consistency is necessary to make plans for the rapid adoption of EVs in the two-wheeler market. Ather Energy, backed by Hero MotoCorp, envisions complete electrification of the Indian two-wheeler market by 2030 and is preparing to expand its exports to markets similar to India.

As the FAME-II scheme, which promotes the manufacturing of EVs in India, is set to expire in March 2024, Phokela expresses his contentment with the current level of government support and subsidies. However, he hopes for an extension of the scheme along with predictable policies for the next three to five years to accelerate EV adoption.

Phokela emphasizes that unpredictability in policies hampers business plans, making it difficult for companies to make strategic investments in the sector. As Ather Energy plans to set up a third plant with a production capacity of 1 million units annually, Phokela stresses the need for stable policies to determine the scale of investment.

The company is satisfied with the current subsidy levels and does not recommend increasing them to artificially sustain the market. Phokela believes that longevity and consistency of subsidies are more crucial than a higher amount of subsidy in a single year. Spread out over multiple years, the finite amount of money allocated for subsidies can be utilized more efficiently for the long-term growth of the sector.

Phokela predicts that by 2025, there will be a 50-55% penetration of EVs in the two-wheeler market, and complete electrification is expected by 2030. Ather Energy is also considering venturing into export markets that resemble the Indian market, with plans to make an official announcement in the next two months.

Sources: PTI


  • EV: Electric Vehicle
  • FAME-II: Faster Adoption and Manufacturing of Electric Vehicles in India. A government scheme that aims to promote the adoption and manufacture of electric vehicles in India by providing subsidies and incentives to manufacturers and buyers.


PTI – Press Trust of India (news agency)