Ather Energy - Business, Performance, and Future Outlook
Ather Energy, founded in 2013 and headquartered in Bengaluru, is a prominent Indian electric two-wheeler manufacturer. The company offers a range of electric scooters, including the Ather 450X, 450S, 450 Apex, and the recently launched family-oriented Rizta. Ather also operates its own charging infrastructure, Ather Grid, with over 2,000 fast-charging stations across more than 200 cities in India. The Hindu Business Line+4Financial Times+4Wikipedia+4mint+7Inc42 Media+7The Hindu Business Line+7NDTV Profit
🧩 Business Model
Ather's revenue streams are diversified as follows:
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Electric Scooter Sales: The primary revenue driver, accounting for approximately 90% of total revenue. In FY24, Ather sold 86,315 units of the 450X series and 22,712 units of the 450S. Inc42 Media+1GrowthX+1
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Accessories and Merchandise: Sales of EV-related accessories, spare parts, and merchandise contributed around 3% to the revenue.GrowthX+1Inc42 Media+1
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Services: Offerings like the Pro Pack, which includes Atherstack features, Ather Connect access, and extended battery warranty, made up about 7% of the revenue.GrowthX+1Inc42 Media+1
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Other Operating Revenue: Minor contributions from the sale of scrap materials and other sources. GrowthX
📊 Financial Performance (FY24)
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Revenue: ₹1,753.8 crore, a slight decline from ₹1,783.6 crore in FY23.ETEnergyworld.com+3GrowthX+3NDTV Profit+3
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Net Loss: ₹1,060 crore, widening from ₹864.5 crore in the previous fiscal year. The Hindu Business Line
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Operating Expenses: ₹2,674.2 crore. ETEnergyworld.com
The reduction in government subsidies under the FAME-II scheme led to increased retail prices for Ather's electric scooters, impacting sales and revenue. Business & Finance News+8Inc42 Media+8mint+8
📈 Sales Performance
In October 2024, Ather achieved a record by shipping over 20,000 scooters in a single month. The newly launched Rizta model significantly contributed to this milestone, accounting for approximately 60-70% of the month's total volume. Reuters+3Business & Finance News+3Inc42 Media+3
🔮 Future Outlook and Strategy
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Product Diversification: Ather plans to expand beyond performance scooters into family, convenience, and value segments to cater to a broader customer base. mint
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Production Expansion: The company aims to produce 20,000 units per month and is setting up a third manufacturing facility in Maharashtra to meet growing demand. The Hindu Business Line
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Market Share Goals: Ather targets a 25-30% market share in India's electric two-wheeler segment by the end of FY24. The Hindu Business Line+6mint+6Financial Times+6
💰 Investment Opportunity
Ather Energy's recent IPO valued the company at up to $1.4 billion, a 44% reduction from its earlier valuation target. The IPO raised $350 million, making it India's third-largest primary share sale in 2025. Reuters
Despite the valuation cut and ongoing losses, Ather's strategic initiatives in product diversification, production expansion, and market penetration position it for potential growth in the rapidly evolving electric vehicle market.