Copyright FOURIN, Inc. 2023
Electric Motorcycle Startup Ather Energy Plans to Expand Charging Stations to 30 Cities in India
Ather Energy is an Indian electric motorcycle startup founded in 2013. The company was launched by alumni of the Indian Institute of Technology Madras and started production and sales of electric motorcycles in 2018. India's largest motorcycle company Hero MotoCorp has a 38.57% stake in Ather Energy which is attracting attention as part of Hero MotoCorp’s electric motorcycle business. Ather Energy began business operations in Bangalore where its headquarters is located, but it has already entered to Chennai and plans to expand into nine more cities in India. As a further business plan for the next 2-3 years from 2020, the company is planning to expand its business area to 30 cities throughout the nation.
Ather Energy has entered the electric motorcycle market with the launch of its first electric scooter, the Ather 450, in 2018. In 2020, the Ather 450X, which is an improved model of the Ather 450, was released, beginning delivery in November. The company uses a rechargeable battery which is located under the footrest of the motorcycle. The drive motor is mounted inside the vehicle. Ather Energy’s product strategy is characterized by its design that emphasizes product performance rather than price competitiveness.
In addition to the manufacture and sale of electric motorcycles, Ather Energy also positions the charging infrastructure system “Ather Grid” as its core business. Ather Grid is a quick charging station operated by Ather Energy, and is intended for use not only by motorcycle users but also by automobile users. In fall 2020, Ather Grid had a total of 52 stations in Bangalore and Chennai, but the company plans to expand its network throughout in India in the coming years.
Ather Energy: Business Overview and Recent Business Developments
|Name:||Ather Energy Pvt. Ltd.|
|Headquarters:||Karnataka state, India|
|Representative:||Tarun Mehta (CEO)|
|Major investors:||As shown below. – Hero MotoCorp (India’s largest motorcycle manufacturer. As of July 2020, it had a 38.57% stake in Ather Energy, making it the largest shareholder.) – Sachin Bansal and Binny Bansal (Co-founders of Indian e-commerce giant Flipkart.) – Tiger Global (American hedge fund)|
|Products:||Electric scooters (Ather 450X, Ather 450 Plus)|
|Production plant:||Bangalore city, Karnataka state – Annual production capacity: Approx. 30,000 electric motorcycles|
|Sales revenue (FY): As shown in the table below.|
|Prior to launch||42 million INR||353 million INR|
|Sales (new registration) volume (CY): As shown in the table below.|
|2018||2019||YTD Sep. 2020|
|3 units||2,290 units||1,900 units|