Eye Energy Eyes on E -Back – Ether Energy Eye on E Bike

The Ether energy listed on Tuesday is preparing to enter the electric motorcycle segment. In this segment, the company will compete directly with Ola Electric.

Ather Energy after listing Tarun Mehta, co-founder and chief executive, said, ‘We have started work, but I can give you more information around the announcements. I think motorcycles will become electric in the coming year. We are 125 cc to 300 cc ICE Equilant is focusing on landing vehicles in the segment.

The company has also received ARAI approval for the use of LFP batteries. It will be used in two -wheelers. Mehta says that this will help reduce the cost further. Currently electric two -wheelers run on lithium ion batteries.

Mehta refused to enter the segment of less than Rs 1 lakh (in which many of its competitors have achieved market participation), saying, ‘Two -wheeler is going through an upgrading phase. The participation of 125 cc scooters worth more than Rs 1 lakh has increased from 20 per cent to 50 per cent. Therefore, we do not think it would be prudent to go to the market of 70-80 thousand, because the margin in the segment of less than 1 lakh is very low. The ‘cheap strategy’ in our industry has not been effective. ‘

Ather says that there is a lot of potential in the market of more than Rs 1 lakh. Mehta said, ‘We started with a scooter of Rs 1.4-1.5 lakh. But now with the result, we are on a scooter of Rs 1.1 lakh. The scooter market is also divided on the basis of use. We first had a family scooter, then a power scooter, now we have maxi scooters and sports scooters. ‘

Their main focus is definitely on expanding their distribution. Mehta says that despite the fact that their distribution is one-third of competitors, they have been successful in gaining about 15 percent market share last month. Now his goal is to go to the 100 cities where they are competitive. But his distribution is not penetration and he reaches a small part than his rivals.

Although Ather is not worried that he is not eligible for PLI scheme for electric two -wheeler manufacturers, while his competitive companies like Ola, Bajaj and TVS are eligible for the scheme. This may lead to pressure on the margin and profit of Ather. Mehta says, ‘PLI is a risk of obstruction in the long run as it is a strategy of a few years and once the vehicles become addicted to it, it is very difficult to leave. We are taking 19 % gross margin without the help of PLI and this makes our business model strong. When the PLI is finished, the pricing strategy of Ather will be the strongest as it will not affect us. But this will lead to a decline in margins of other companies (from the end of PLI related exemption) which is negative for business and customers. ‘

First Published – May 6, 2025 | 10:53 PM IST

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