Ather Energy is today present in 23 cities across India, and plans to set up a total of 150 experience centres in 100 cities by March 2023. Its Ather Grid fast-charging network comprises of over 200 charging points across the country at present, and Ather is already collaborating with Hero MotoCorp to help India’s leading two-wheeler manufacturer incorporate its fast-charging system into Hero’s upcoming electric two-wheelers.
The second Ather plant is expected to go live in 2022 in Hosur, Tamil Nadu, and the company says it has committed an investment of Rs 650 crore towards ‘enhancing operational efficiency and production capacity’. In its statement, Ather also says the new facility will focus on lithium-ion battery manufacturing. It will give Ather Energy a cumulative annual production capacity of 400,000 units – that’s nearly four times the start-up’s current production capacity of 120,000 units.
Talking about competition from newly launched popular brands. Tarun Mehta added that Ola’s announcement helped EV sales to increase by 60% in last 2/3 months. The response is more from Tier-II and Tier-III cities. Announcements help people to be aware and excited about electric mobility.
"Healthy competition only improves supply chain and business viability.", he said.
Amazing news on the ₹750 CR revenue. At the start of 2020, when PluginIndia met Tarun Mehta, Ather had just released the Ather 450X to lot of criticism on their pricing, the variants, the subscription fees and so on. To their credit, the team setup community meets in all cities, took feedback and improved the offerings. Today the Ather 450X and 450Plus are very attractive options for someone looking at an electric scooter. While revenues are a huge positive, we would be interested in the profit made on sale of each unit. With a Ex-Showroom price of ₹1.75 lakhs (before government subsidies), there seems to be decent margin (we hope).
Increasing the manufacturing capacity to 4,00,000 units is a plus, which should keep them going for next few years. The concern here is that, Ather are continuing to spend lot of money - ₹650 CR on the new manufacturing facility. Ultimately they will have to repay a lot of investor money. They have to launch more affordable variants soon, if they want to increase their market share and generate profits to keep their investors happy.
All in all very, this news is very positive for the Indian EV industry.