Ather Energy

About the Company

Ather Energy was established in 2013. It is an EV company that focuses on designing and developing electric two-wheelers (E2W), battery packs, and charging infrastructure from the ground up in India. Currently, Ather’s lineup includes two models, the Ather 450 and the Ather Rizta, comprising seven variants. In FY 2024, Ather captured approximately 11.5% of the market with sales of 1,09,577 E2Ws, securing the third position behind Ola Electric and TVS Motor Company. As of March 31st 2024, Ather has 208 experience centres and 191 service centres in India, and 3 experience centres and 1 service centre in Nepal. To be eligible for the shareholder quota, Hero MotoCorp’s shares must be held as of the RHP filing date.

Strengths

• Strong in-house R&D capabilities have allowed the company to be the first in India to provide features such as a touchscreen dashboard, trip planner, and internet connectivity.
• The company’s focus on quality helps them sell their products at a premium.
• Ather is strong in the performance scooter market, has started offering convenience scooters, and is working on developing a motorcycle platform.
• Ather has expanded its manufacturing facility from 21,300 E2Ws per year in 2021 to 2,66,850 E2Ws per year in 2024.

Risks

• Negative cash flows from operations since incorporation.
• Only 2 products are on offer with heavy dependency on the sale of the Ather 450X. A decrease in sales of this model will adversely affect the company.
• The FAME subsidy influenced Ather’s retail prices, which have now been replaced by the EMPS subsidy. There’s no guarantee that this new scheme will be extended or replaced.
• The company is highly dependent on its key management. Any change in management may affect the company.