Ather Energy, an Indian scooter manufacturer, they wanna speed up the launch of new scooter models in India and explore export opportunities. They’re seeking additional funding to support their growth following a reduction in government subsidies for electric vehicles.
In the last fiscal year, electric scooters only made up 5 percent of the total scooter and motorcycle sales in India, falling short of the government’s goal of 70 percent by 2030. However, in May, the government cut incentives for electric vehicles from 40 percent to a max of 15 percent before taxes, causing e-scooter sales to drop significantly the following month.
Despite this setback, Ather’s sales are bouncing back. CEO Tarun Mehta revealed that they’re expediting the launch of two new scooter models, with one hitting the market six months earlier than they planned.
Mehta acknowledged that the subsidy change slowed down the shift to electric vehicles, but he believes it won’t have a major long-term impact. However, it does mean that Ather has to speed up product launches and invest more in product development.
As part of their long-term growth strategy, Ather aims to generate over 50 percent of its sales from global markets by the end of the century. They plan to expand their product lineup to include a scooter designed for family use in addition to their current models designed for individual riders.
Currently valued at about $750 million, Ather intends to secure more funding by the end of 2023 to support their growth plans, although specific details aren’t provided.
According to a source familiar with Ather’s plans, they’re looking to raise a sum similar to the $108 million secured in a recent rights issue, which involved existing shareholders Hero MotoCorp and Singapore’s sovereign wealth fund GIC.
Additionally, Ather plans to begin selling their scooters in an Asian export market within the next few months. Mehta expressed optimism about India becoming not only the largest market for electric two-wheelers but also the largest exporter in the world.
