WionDrive News Desk 
New Delhi: Electric scooter manufacturer Ather Energy has announced plans to expedite the launch of new models and explore export opportunities as part of its growth strategy. This move comes in response to the Indian government’s reduction in subsidies for electric vehicles (EVs).
Government Subsidy Reduction Impact
Although India’s electric scooter market is growing, accounting for 5% of total scooter and motorcycle sales in the last fiscal year, it fell short of the government’s target of reaching 70% by 2030. In May, the government unexpectedly reduced cash incentives on EVs from a maximum of 40% of the price before taxes to just 15%, causing a significant drop in e-scooter sales the following month.
Ather Energy’s Response
Despite facing initial sales declines, Ather Energy is now witnessing a rapid recovery. CEO Tarun Mehta revealed that the company is expediting the launch of two new models, with one being introduced six months earlier than initially planned. Mehta acknowledged that while the subsidy changes slowed the EV transition, he expects no significant long-term impact.
Global Expansion Goals
As part of its long-term strategy, Ather aims to derive over 50% of its sales from global markets by the end of the decade. Currently, the company is India’s third-largest e-scooter manufacturer, following Ola Electric and TVS Motor. Ather intends to expand its lineup by introducing a family-oriented scooter alongside its existing two models designed for individual riders.
Fundraising for Growth
To support its growth plans, Ather Energy plans to secure additional funding by the end of 2023. Although specific details were not disclosed, a reliable source suggested that the company is seeking an amount similar to the $108 million raised in a recent rights issue involving existing shareholders Hero MotoCorp and Singapore’s sovereign wealth fund GIC.
Eyeing International Markets
Ather will soon pilot sales operations in an Asian export market, further emphasizing India’s potential to become a significant global exporter of electric two-wheelers.
