Electric Two-Wheeler Maker Ather Energy Calls for Policy Predictability to Drive Investment Plans

Ather Energy, an electric two-wheeler maker, emphasizes the need for policy predictability to drive investment plans in the accelerating electric mobility sector. The company, backed by Hero MotoCorp, expects the entire domestic two-wheeler market to be fully electrified by 2030. Additionally, Ather Energy plans to start exporting its electric two-wheelers to markets similar to India in the near future.

As the FAME-II (Faster Adoption of Manufacturing of Electric Vehicles in India) scheme is set to end in March next year, Ather Energy’s Chief Business Officer, Ravneet S Phokela, expresses gratitude for the government support and the current levels of subsidy. However, he hopes that the subsidy will be extended for another three to five years to accelerate electric vehicle (EV) adoption.

Phokela emphasizes the importance of policy predictability, stating that unpredictability is detrimental to business plans and investments. He urges the government to maintain the current structure of subsidies and make them predictable, allowing companies like Ather Energy to confidently make long-term investment decisions. Without policy predictability, the company finds it challenging to finalize plans for a new manufacturing plant.

While appreciating the current levels of subsidy (around Rs 21,400 per vehicle), Phokela suggests that more emphasis should be placed on the longevity of subsidies rather than increasing the amount in one year. He also suggests the possibility of reducing the subsidy structure progressively over the years.

Regarding the electrification of the market, Phokela predicts that by 2030, 100% electrification of the two-wheeler market in India will be achieved. However, by 2025, he expects a penetration rate of approximately 50-55%. Ather Energy also plans to begin exporting its electric two-wheelers soon, with an announcement expected within the next two months.

In conclusion, Ather Energy calls for policy predictability to support investment plans in the electric mobility sector. By extending the period of subsidies and maintaining their structure, the company believes the government can accelerate the adoption of electric two-wheelers in India.

– FAME-II: Faster Adoption of Manufacturing of Electric Vehicles in India, a scheme introduced by the Indian government to promote the manufacturing and adoption of electric vehicles.
– Electric Two-Wheeler: A two-wheeled vehicle powered by an electric motor instead of an internal combustion engine.

– PTI (Press Trust of India)