Huge response to the Ather electric scooters has resulted in the company opening experience centers in 13 cities across India
Bengaluru based, electric two-wheeler manufacturer, Ather Energy has been seen outstanding success of their electric scooters. Following the revisions in the FAME II Scheme, prices of the scooter become cheaper by Rs 14,500 to buyers in Bengaluru and by Rs 13,500 for the Ather 450X and 450 Plus in New Delhi.
Tarun Mehta Co-Founder and CEO of Ather Energy expects electric scooter market share to be above 40% of the total scooter sales of India. And the rate at which electric scooter demand is growing, some might even consider Tarun’s target to be achieved even faster.
Ather Bangalore Experience Center
Ather Energy has announced today that their single experience center in the city of Bangalore has generated sales of Rs 10 crores in the month of July 2021. Ather says that this is double the business done by brands which sell petrol scooters. And that too from a showroom which is half the size (in comparison to ICE scooter showroom).
Ather Energy started this calendar year with a new showroom opened in Mumbai in January 2021 followed by showrooms across Pune and Ahmedabad in February 2021. Ather Experience Centers are now located in cities of Mumbai, Pune, Ahmedabad, Kochi, Jaipur, Hyderabad, Bangalore, Chennai, Vizag, Calicut, Trichy, Delhi, Indore.
Ather now targets 30 new showrooms across new cities by the end of this year to span 100 cities in due course. Along with company owned showrooms, Ather is also in the process of entering into agreements with dealer partners for the sale of Ather 450X and Ather Plus e-scooters.
In FY2021 a total of 4.5 million petrol powered scooters were sold. Tarun Mehta estimates that there is potential for 1.8 million or 18 lakh electric scooters to be sold in FY2025. Earlier this year in February, Ather’s new manufacturing plant, with a production capacity of 110,000 e-scooters and 120,000 battery packs per annum, went on stream.
Central and State Governments Support
Demand for electric vehicles surged in view of escalating fuel prices. It should be recalled that petrol prices have crossed the Rs 100 mark in most metros and is nearing that figure in other cities of India. An Ather e-scooter promises one-sixth the running cost of a petrol scooter which relates to substantial saving to the user.
Electric two wheeler popularity also increases with ongoing support from both Central and State Governments in the form of revisions in the FAME II incentive scheme. The company cites that it could be supply and not demand that will be a limiting factor in the future.
The amendment to the FAME II, (Faster Adoption and Manufacturing of Electric Vehicles in India) introduced in June 2021 saw electric two wheeler subsidy increase to 50 percent to Rs 15,000 per kWh. This has led to a substantial price reduction of electric two wheelers.
Automakers such as Ather and TVS Motor reduced prices of the 450X and iQube respectively while Okinawa Scooters also stated that the price of the iPraise+ will cost Rs 17,892 less to a new reduced pricing of Rs.99,708. Praise Pro prices have also dipped by Rs 7,947 to Rs 76,848 while the Okinawa Ridge+ is now at Rs 61,791, down Rs 7,209 over earlier pricing.
Along with this new policy, several states like Gujarat, Maharashtra, Rajasthan, etc have also announced EV policies that has boosted sales and successfully turned buyer sentiments towards electric vehicles.