China's recent imposition of export controls on lithium battery materials and manufacturing equipment, effective from November 8, is sending ripples through the global electric vehicle (EV) supply chain, with Indian electric two-wheeler manufacturers feeling the impact. The new regulations target high-energy lithium-ion batteries and critical manufacturing components, potentially disrupting the EV industry's supply dynamics.

Impact on Indian EV Manufacturers

The effects of these export controls are being felt differently by two prominent Indian EV manufacturers:

Ather Energy : Resilience Amid Challenges

Ather Energy's stock has shown remarkable resilience, gaining 16.00% in the past month and an impressive 85.00% over three months, reaching Rs 634.50. The company's strategic move to reduce its dependence on Chinese components through a partnership with Amara Raja Energy & Mobility for battery localization appears to be bolstering investor confidence. Analysts view Ather's technical indicators as strong, with the stock trading above its 20-day Simple Moving Average (SMA) near the 580-585 zone.

Ola Electric: Navigating Headwinds

In contrast, Ola Electric has faced more significant challenges. The company's shares have declined 13.00% over the past month to Rs 52.58 and are down 41.00% over the past year. Despite efforts to increase self-reliance, such as producing 4680 lithium-ion cells at its Tamil Nadu Gigafactory and developing rare earth-free ferrite motors, Ola remains exposed to Chinese component dependencies. Technical analysts observe bearish momentum for Ola Electric, recommending caution with critical support at Rs 48.00.

Looking Ahead

Both Ather Energy and Ola Electric face potential supply chain disruptions and cost pressures due to China's new export controls. However, Ather's localization efforts and stronger technical position may provide better near-term resilience. The contrasting market performances of these two companies highlight the importance of supply chain diversification and localization strategies in the rapidly evolving EV sector.

As the situation unfolds, the Indian EV industry will be closely watching how these export controls impact production costs, supply chain stability, and ultimately, the competitive landscape of the electric two-wheeler market in India.

Ather Energy , a leading electric two-wheeler manufacturer in India, has reached a significant production milestone of 500,000 electric scooters. This achievement coincides with the launch of their new RIZTA model, marking a pivotal moment in the company's growth trajectory.

Production Milestone and New Model Launch

Ather Energy's 500,000th vehicle rolled off the production line at their Hosur facility in Tamil Nadu. The milestone scooter was the Rizta, Ather's flagship family scooter, which has become a strong growth driver for the brand. The Rizta now accounts for over one-third of Ather's total production volumes, significantly contributing to the company's expansion.

Expansion Plans and Manufacturing Capacity

To meet the growing demand for its electric scooters, Ather Energy is taking significant steps to increase its production capacity:

The new Factory 3.0 in Maharashtra will be built on Industry 4.0 principles, integrating advanced digital technologies into the manufacturing process. This expansion is expected to significantly boost Ather's production capabilities, allowing the company to meet the increasing demand for electric two-wheelers in India.

Market Expansion and Product Portfolio

Ather Energy has been rapidly expanding its presence in Middle and North India, with a focus on tier 2 and 3 cities alongside metro markets. The company's product portfolio now includes:

1. Ather 450 series: Focused on performance-oriented customers
2. Ather Rizta: A convenience-first family scooter line

Together, these product lines offer eight variants, catering to a wide range of consumer preferences in the electric two-wheeler market.

Charging Infrastructure

As part of its commitment to the electric vehicle ecosystem, Ather has established a dedicated fast-charging network called Ather Grid. The company has installed:

• 4,032 Fast and Neighbourhood chargers globally
• 3,997 chargers across India
• 35 chargers in Nepal and Sri Lanka

This extensive charging network further strengthens Ather's position in the electric two-wheeler market by addressing one of the key concerns of EV adoption – charging infrastructure.

Innovation and Intellectual Property

Ather Energy's focus on research and development is evident from its intellectual property portfolio:

This robust IP portfolio underscores Ather's commitment to innovation in the electric vehicle space.

As Ather Energy continues to expand its production capacity and market presence, it is well-positioned to capitalize on the growing demand for electric two-wheelers in India. The achievement of the 500,000 production milestone, coupled with ambitious expansion plans, signals a promising future for the company in the evolving electric vehicle market.