Ather Energy planning new model launches; testing export markets

Electric scooter manufacturer Ather Energy is planning to accelerate new model launches in India while also testing some export markets, the company's CEO Tarun Mehta told Reuters. One of the two new models will be launched six months earlier than originally planned. With the new launches, the company aims to have scooters designed for use by different members of a family, in its line-up. Meanwhile, pilot sales will begin in one Asian export market in a couple of months.

The company is raising new rounds of investment to boost growth of its product line-up after the government lowered subsidies for battery-powered vehicles in May. It slashed cash incentives on electric vehicles to a maximum of 15% of the price before taxes from the earlier 40%. This led to a drop in EV sales with e-scooter sales falling to half the very next month of the announcement. Though sales of Ather models also dropped, the company says that they are rapidly picking up. "The transition to electric vehicles could have been faster if not for the (subsidy) change but even then, there will be no major impact in the mid to long term," Mehta said.

He added that given this shift, the company is having to fast track product launches and invest more in product development. As part of its long-term growth strategy, Ather is aiming for more than 50% of its sales to come from global markets by the end of the decade.

The company which is valued at around $750 million and is India's third-largest e-scooter maker after Ola Electric and TVS Motor, plans to raise more money before the end of 2023 to back its growth plans. As per a source, the company is looking to raise an amount similar to the $108-million garnered from existing shareholders Hero MotoCorp and Singapore's sovereign wealth fund GIC in a recent rights issue.