In a significant development for the electric vehicle (EV) industry, Ather Energy has secured investments totaling Rs 900 crores from Hero MotoCorp and Singapore-based investment firm GIC. Hero, currently holding a 33.1 percent equity stake in Ather, will further invest up to Rs 550 crores. This marks a significant endorsement of the dynamic EV start-up by the world’s largest two-wheeler OEM.
Demand for New Products and Charging Infrastructure:
Ather Energy intends to deploy this investment to bolster its product portfolio and expand its charging infrastructure. With the EV market gaining momentum, this infusion of funds will enable Ather to continue its growth trajectory.
Ather Market Dynamics:
Ather Energy entered the market with its smart electric scooters, the 340 and 450, in June 2018. Since then, the company has experienced remarkable growth. Just two months ago, they introduced their latest offering, the 450S, featuring a 3kWh battery pack. What’s more it has an expected range of 115km under Indian driving conditions, and a top speed of 90kph. Its base price starts at Rs 1,29,999 (exclusive of state subsidy).
Riding the EV Wave:
The surge in demand for electric two-wheelers in India is evident in the numbers. In 2016, 16,301 units were sold, while in 2022, this figure skyrocketed to 6,15,365 units, signifying a 3,675 percent increase in just five years. Additionally, Ather Energy has been a key beneficiary of this growing trend, with a stellar performance in FY2023 – a total of 93,212 units sold, reflecting a 302 percent YoY increase from FY2022.
Ather Financial Growth and Outlook:
This robust performance is mirrored in Ather’s financials, with a turnover of Rs 1,806.1 crores in FY2023, marking a 336 percent surge from FY2022. Hero MotoCorp’s sustained investment in Ather Energy reflects its confidence in the Indian EV growth narrative, especially as they expand their own presence in the EV sector.
Ather Energy has strategically expanded its manufacturing capacity, inaugurating a second plant in Hosur, Tamil Nadu in November 2022. This has doubled its capacity to 4,20,000 units annually. Furthermore, with increased automation, assembly times have been reduced by 20 percent. Additionally, Ather Grid charging stations, numbering over 1,400 across 100 cities, comprise India’s most extensive EV two-wheeler charging network. Collaborating with BPCL, Ather aims to set up over 100 fast chargers at BPCL locations nationwide by the year’s end.
This substantial investment reaffirms the promising trajectory of Ather Energy and underlines the growing confidence in India’s electric mobility sector. Lastly, the strategic collaborations and robust performance pave the way for an electrifying future in the Indian EV landscape.