Bullish on demand growing rapidly for electric two-wheelers, Hero MotoCorp is to invest an additional Rs 140 crore in the Bengaluru-based smart electric scooter manufacturer Ather Energy. This move will see Hero MotoCorp increase its equity stake in Ather Energy to 39.7% from the existing 36.7 percent.
Hero MotoCorp was the last of the three legacy two-wheeler OEMs to enter the EV market with its Vida electric scooter in October 2022, over two-and-a-half years after Bajaj Auto and TVS Motor Co launched their Chetak EV and the iQube in January 2020.
Ather Energy, which was incorporated in India on October 21, 2013, is engaged in the business of designing, manufacturing, producing, selling, servicing, software development, and software management, in relation to electric automobiles and charging infrastructure, and also storage, distribution, and management systems of all forms of electric power (including energy in the form of batteries) and other ancillary services. Ather’s turnover jumped 336% year on year in FY2023 to Rs 1,806.1 crore, Rs 413.8 crore in FY2022 and Rs 79.8 crore in FY2021.
In the first 11 months of CY2023, Ather Energy is currently the third-ranked EV OEM, after Ola Electric and TVS Motor Co. Between January and end-November 2023, the company had retailed 97,900 units, which gives it a 12.50% share of the all-India e-two-wheeler market. However, with an aggressive Bajaj Auto hard on its heels, Ather is getting ready to protect its turf with the launch of the new Apex 450 which is set to be the quickest and most powerful Ather yet.
Ather Energy plans to expand its retail network from the existing 150 experience centre in 100 cities to 120 cities and 200 outlets by end-FY2024.
RETAIL NETWORK EXPANSION AND TWO NEW E-SCOOTERS COMING UP
Ather Energy, which currently has a 13% market share (at the end of November 2023), aims to double its share to 30% with two new e-scooters which are slated for market introduction in FY2025. The company says it is developing a new platform, which will spawn a brand-new product before the festive season next year, and another model shortly after that. ”We are going to introduce two strong products, very different from the Ather 450X, which is going to remain our performance line,” Ravneet Singh Phokela, Chief Business Officer, Ather Energy, told Autocar Professional in September.
“There are lots of other spaces that we haven’t explored yet. There are the fun, family, and value segments. While the 450X continues to remain sharply focused on performance, at the same time, we are looking at getting out into new categories. That expands the market opportunity quite dramatically for us.
“We should have something in the market in the next three quarters (around Q1-Q2 FY2025), and another one a few quarters down the line,” added Phokela.
On the retail network front, Ather Energy at present has around 150 experience centres across 100 cities. It plans to expand the countrywide network to 120 cities and 200 outlets by end-FY2024. While it will refrain from going into deep rural areas, Ather Energy is confident that its upcoming products will strengthen its potential in Tier-2, Tier-3, and Tier-4 markets.
(With inputs from Mayank Dhingra)
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