Ather Energy Working On New 2-Wheeler Platforms To Enter Electric Motorcycle Segment

Following Ola Electric’s suit, IPO-bound electric two-wheeler (E2W) manufacturer Ather Energy is working on new platforms to foray into the electric motorcycle segment.

In its draft red herring prospectus (DRHP) filed with SEBI, Ather said it plans to expand its product portfolio with the launch of new vehicles that can cater to the broader E2W market with upgraded software features. 

“We are in the process of developing two new E2W platforms that are expected to further improve cost structures and enable us to launch products across a range of scooter and motorcycle segments,” the startup’s DRHP read. 

As of now, Ather’s portfolio comprises seven electric scooters – Ather 450X (2.9 kWh), Ather 450X (3.7 kWh), Ather 450S, Ather 450 Apex, Ather Rizta S, Ather Rizta Z (2.9 kWh) and Ather Rizta Z (3.7 kWh). 

The variants of Ather 450X brought in the highest revenue for Ather in the financial year 2023-24 (FY24). Ather 450X contributed INR 590.5 Cr to the revenue. Revenue from Ather 450X with 2.9 kWh capacity stood at INR 157.8 Cr, while that of Ather 450X with 3.7 kWh capacity stood at INR 535.5 Cr.

For the fiscal, the EV maker saw its revenue decline 1.5% year-on-year (YoY) to INR 1,753.8 Cr. Net loss zoomed over 22% YoY to INR 1,059.7 Cr in FY24. 

The startup filed its IPO papers earlier in the day and is looking to raise INR 3,100 Cr via a fresh issue of shares. The public issue will also comprise an offer-for-sale (OFS) of up to 2.2 Cr equity shares.

Ather will use the IPO proceeds to finance its new factory in Maharashtra. As of now, it operates only one plant in the Hosur district of Tamil Nadu.

Besides, the funds will also be used for investment in research and development, marketing initiatives and general corporate purposes. 

Last month, Ather’s rival Ola Electric unveiled its electric motorcycle portfolio. Its Roadster portfolio comprises Roadster X, Roadster, and Roadster Pro bikes. The deliveries of the motorcycles will commence from Q4 FY25.

With the entry of Ola Electric and the proposed entry of Ather Energy, the competition in India’s electric bike segment will intensify further. As of now, the segment is populated by the likes of Revolt, Pure EV, among others. 

According to a report by Mordor Intelligence, the Indian ebike market is projected to grow to a size of $60.9 Mn by 2029, clocking a CAGR of 17.7% from $27 Mn in 2024.