For Ather Energy, the tougher job of creating customer awareness is over and the task on hand now is to increase market share with high volume products, said Ravneet S. Phokela, COO.
“When we started selling 3-4 years ago, a lot of our efforts went into convincing customers to opt for electric vehicles. It was category creation and we were not asking them to buy an Ather but to consider electric,” he said. Today, things have changed and nobody needs to be persuaded any longer when it comes to purchasing an electric scooter.
It took the company almost six years to work on its first platform for the 450 series. Retails of two trim levels began in 2018 and it was another four years before Ather would expand its portfolio to six products with the 450X and 450S with two trim levels apiece.
As Phokela said, it was not just about developing the platform based on the startup’s own abilities but also those of the supply chain. “We could only grow at the pace of the ecosystem,” he added. With the supply chain now a lot more mature, the company is looking at tapping other e2W segments.
The 450X, 450 and the 450S are the performance models for Ather. Phokela said the next step would be getting into mass segments like the family scooter where two new model lineups are planned for the next couple of years. Beyond this, e-bikes are also being looked at as potential candidates.
Emerging Trends
Beyond their green benefits, the 450 lineup convinced customers that EVs were ‘great’ in terms of performance, handling or usability. Today, people are seeing products based on either specific family needs or just performance. “Our product lines are based on these emerging trends,” said Phokela.
With two new e-scooters due to enter the market, Ather aims to consolidate its presence with a market share of over 30%. It has 15% in the smaller performance segment piece and is confident that 30% is achievable with high volume products. “The market is always held by the top four players with a combined 80% share,” he added.
With the new product lines, the company is looking at use of common components like batteries and motors to reduce costs. The price range is expected to be INR 1.20-1.50 lakh. “We have made the investments and the next priority is to scale up profitably,” said Phokela.
Ather is likely to invest INR 600 crore over the next few years into its third plant which will then supplement Bengaluru and Hosur jointly accounting for 4.2 lakh units annually. The choice of location will boil down to fiscal sops offered by the State concerned, access to roads and railways as well as availability of a supply chain.
Phokela said the Gurugram-Manesar belt, Gujarat, Maharashtra and Telangana are potential spots for the third plant. The company is also looking at increasing its experience centres from 150 in 100 cities to 200 in 120 cities by the end of this fiscal.
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