Ather was one of the first to drive the pick-up in adoption with the launch of its 450 series of e-scooters in 2018, but has fallen behind larger rivals Ola Electric and TVS Motor, whose discounts have driven sales.
India will need to keep the subsidy cheques for electric scooters coming for a few more years, the CEO of e-scooter maker Ather Energy said on Saturday.
“We’ve been able to cut down a lot of subsidy reliance, but it’s also come at the cost of almost a year’s worth of lost growth,” Ather CEO and co-founder Tarun Mehta said at the launch of ‘Rizta’.
Mehta was referring to the government’s surprise decision in May to slash cash incentives for e-scooters to a maximum of 15% of the purchase price before tax from 40% previously. Industry experts believe subsidies such as cash incentives are crucial to India hitting its goal of electrifying 70% of its two-wheeler fleet by 2030, as the world’s third-largest importer of oil looks to reduce dependence on fossil fuels.
India’s e-scooter market is small but growing, accounting for 5% of total two-wheeler sales in fiscal 2023-2024.
Ather was one of the first to drive the pick-up in adoption with the launch of its 450 series of e-scooters in 2018, but has fallen behind larger rivals Ola Electric and TVS Motor, whose discounts have driven sales.
Ather’s “Rizta” is priced at Rs 109,999 ($1,321). The scooter has a larger seat and storage space compared with rivals. Mehta hopes it will attract a wider range of buyers in India’s populous north and west regions, helping boost sales.
Loss-making Ather is focusing on top-line growth, Mehta said, but added margins would improve if sales volumes were higher.
“We haven’t broken even yet, I think there’s still a journey, hopefully it’s not very long. Hopefully the Rizta plays a meaningful role because I am happy in how margins are shaping up at a unit level,” he told Reuters.
With inputs from Reuters & Businesstoday!
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