Ather to launch two new e-scooters by March 2025
The electric vehicle startup, which holds the No. 3 position in India’s market for electric two-wheelers and dominates the performance e-scooter segment, is optimistic that the release of two new vehicles in FY2025 would result in rapid growth. With a 14–15% market share in India’s electric two-wheeler market, electric vehicle startup Ather Energy, which has expanded quickly to take the third spot, wants to quadruple its market share to 30% with two new vehicles. The launch of the two new e-scooters is planned for FY2025, the upcoming fiscal year.
According to Ather, it is working on a new platform that will give birth to a whole new product before the holiday season next year and another model soon after. According to Ravneet Singh Phokela, chief business officer ather energy, “We are going to introduce two strong products very different from the Ather 450X, which is going to remain our performance line.”
We haven’t even scratched the surface of all the possible places. There are segments for pleasure, families, and values. While the 450X is still firmly focused on performance, we are also considering expanding into new areas. That significantly increases the market opportunity for us.
Targeting a bigger market with new e-scooters :
Ather Energy believes it will take time for it to make a similar mark in the other electric scooter formats that it intends to tap into, despite the fact that its 450x boasts an aggressive design language, modern features, and sharp riding dynamics and has successfully established its credentials in the performance e-scooter category. Phokela asserted that “if we venture into any other space, it will take time for us to establish ourselves there.”
There is no reason not to believe that our market share should increase by at least 10-15% on top of what it is already, said Phokela, noting that the performance scooter market is not the largest segment of the e-scooter business.
In the premium or performance-oriented electric two-wheeler market (items costing Rs. 1,50,000 and above), Ather holds a 75% market share. There are just three competitors in this sub-segment: TVS Motor Company’s iQube ST, Ola Electric’s second-generation S1 Pro, and Ola Electric’s recently launched performance-focused EV flagship, the TVS X.
A Versatile Ather for the household :
For the two new incoming e-scooters from Ather, a more traditional approach to design and style is what the company plans. This tactic will enable it to reach a wider demographic, including families that frequently look for a unisex scooter that can be used by people of all ages. “From a financial standpoint, Ather will never provide the most affordable solution on the market. As there is a particular degree of quality, refinement, and experience that Ather stands for, and that comes at a cost, we never profess to pursue that objective either, Phokela remarked.
“Having said that, we won’t bring anything that targets a niche either,” he continued. With the new items, we would target the Rs 1.2 billion to Rs 1.5 billion market segment. When 80 percent of the market is in that price band, we will bring our products in the same ballpark.”
As the Indian EV market develops further, there will undoubtedly be some level of cannibalization of the current Ather 450 scooters as a result of the new offerings. We now offer the more economical 450S with a smaller battery and less functions for potential customers for whom the price point may have been a deterrent, according to Phokela. “The proposition of the 450 is quite strong,” he added.
Ravneet Singh Phokela: “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.”
Target of 200 outlets in 120 cities by next March :
Phokela thinks there has been enough consolidation in the electric two-wheeler startup space, where the combined market share of smaller players has significantly decreased from 38 percent last year to around 22 percent in the present. The Top 4 players—Ola, TVS, Ather, and Ampere Vehicles—hold nearly 80 percent of the market in a vice-like grip.
Even in Tier-2 and Tier-3 towns, according to the business, the market response to its premium-positioned products has above its expectations. This was sufficient justification for it to swiftly alter its distribution and expansion goals by transitioning to a franchise model.
Ather Energy currently has over 150 experience centers spread across 100 cities, and by the end of FY2024, it hopes to have 120 cities and 200 outlets. “While we are focusing on younger areas with high per-capita traction, the market size is still what it is. As a result, we have adjusted our retail approach as well.
“For instance, the population is still fairly small in a market like Siliguri (Assam), where scooter usage is very high per capita. For a market like this, we now have a lean retail model where the break even or profitability kicks in much earlier because the prior model would not have worked. Our earlier retail model was built on a specific assumption of throughput and profitability.
The business is also experimenting with “Test Ride Zones,” which are outposts of experience centers but are semi-permanent in nature and intended to endure for 4-6 months. They help us increase our distribution by offering test rides, and they also provide us a chance to learn about a new market. If there is a high potential, we turn them into experience centers. As a result, they enable us to test the waters at a significantly reduced cost,” Phokela listed.
Ather Energy is certain that its next goods will increase its potential in Tier-2, Tier-3, and Tier-4 markets even though it will refrain from entering deeply rural areas. The qualities of the two new products will address family demands as we move into Tier-3 and Tier-4 markets, Phokela concluded. “Rural is a bridge too far at this point, but family needs start becoming important,” he said.
