Ather Energy Forays Into Auto Insurance Distribution

State-Backed NIIF To Offload 2.3% Stake In Ather For INR 551 Cr

SUMMARY

Ather Energy’s board has approved setting up a wholly owned subsidiary to distribute auto insurance policies

The new entity will act as a corporate insurance agent, offering and facilitating insurance policies, subject to approvals from the Registrar of Companies and the Insurance Regulatory and Development Authority of India (IRDAI)

Ather said the move is aimed at diversifying its revenue streams and building recurring income by using its existing customer base

Listed EV maker Ather Energy’s board has approved setting up a wholly owned subsidiary to distribute auto insurance policies.

Ather said the move is aimed at diversifying its revenue streams and building recurring income by using its existing customer base.

The company also expects higher insurance attachment rates and a smoother experience for customers and retail partners through cross-selling and servicing.

Ather plans to invest up to INR 8 Cr initially in the subsidiary, with further investment depending on how the business scales.

Shares of Ather were trading 3.7% higher at INR 686.40 on the BSE at 14:07 IST.

Listed EV maker Ather Energy’s board has approved setting up a wholly owned subsidiary to distribute auto insurance policies.

The company said bringing insurance distribution in-house will allow it to streamline insurance offerings, simplify renewals and improve insurance attachment rates over time.

Ather also said the structure would help it work with insurers to design EV-specific insurance products, instead of adapting traditional motor insurance frameworks built for petrol vehicles. It expects higher insurance attachment rates and a smoother experience for customers and retail partners through cross-selling and servicing.

Ather plans to invest up to INR 8 Cr initially in the subsidiary, with further investment depending on how the business scales.

Notably, the foray into insurance is part of Ather’s broader plan to build an end-to-end EV ecosystem.

The company operates across vehicle manufacturing, charging infrastructure, servicing, accessories, software and extended warranty products such as Eight70. Insurance will now be added to this stack.

In prior discussion with Inc42, its CBO Ravneet Phokela said that the company was focussing on creating an ecosystem of biking and riding products including helmets and other accessories, as well as premium software subscription.

This also reflected in its non-vehicle revenue, which rose to 12% of its total revenue in FY25 from 10% in the previous fiscal year.

Notably, the foray into insurance comes at a time when the company’s core two-wheeler EV manufacturing business is thriving. It surpassed Ola Electric in terms of sales in September this year, selling 18,197 units compared to Ola’s 13,401 units.

With a growing installed base and rising sales volumes, the insurance would provide another layer of revenue for Ather, which has recorded 1.85 Lakh sales in 2025 (as of November), a 47.84% rise from last year’s 1.25 Lakh in 2024.

In Q2 FY26, the company reported an operating revenue of INR 898.8 Cr and a net loss of INR 154.1 Cr.

Shares of Ather ended today’s trading session 5.7% higher at INR 700.10 on the BSE.