Ather Energy Unveils 'Battery as a Service' and New Initiatives to Boost EV Adoption in India

2 min read     Updated on 14 Aug 2025, 12:38 PM
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Reviewed by
Radhika SahaniScanX News Team
Overview

Ather Energy introduced new initiatives to accelerate EV adoption in India. These include a 'Battery as a Service' model reducing upfront costs by 30%, an extended Assured Buyback programme offering up to 60% value after three years, and an Enhanced Comprehensive Warranty covering critical components for up to five years or 60,000 km. The BaaS model allows customers to pay ₹1 per kilometer for battery usage with a minimum monthly usage of 1,000 kilometers. These initiatives aim to address key concerns of potential EV buyers: high upfront costs, resale value uncertainty, and warranty issues.

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*this image is generated using AI for illustrative purposes only.

Ather Energy , a leading electric two-wheeler manufacturer in India, has announced a series of groundbreaking initiatives aimed at accelerating the adoption of electric vehicles (EVs) across the country. The company's latest offerings include a 'Battery as a Service' (BaaS) model, an extended Assured Buyback programme, and an Enhanced Comprehensive Warranty, all designed to address key concerns of potential EV buyers.

Battery as a Service: Making EVs More Affordable

Ather Energy's innovative BaaS model allows customers to significantly reduce the upfront cost of purchasing an electric scooter. Under this scheme, buyers only pay for the scooter's body or 'shell,' while the battery cost is covered through a flexible monthly usage plan. This approach effectively splits the price of the scooter into two components: the shell and the battery.

Key features of the BaaS model include:

  • Reduced initial investment: The Ather Rizta is now available starting at ₹75,999 (ex-showroom Lucknow), representing a 30% reduction in upfront costs.
  • Usage-based pricing: Customers pay ₹1 per kilometer for battery usage, based on a 48-month package with a minimum monthly usage of 1,000 kilometers.
  • Complimentary fast charging: Free access to Ather's network of over 3,300 fast chargers across India for one year, addressing range anxiety and charging costs.

Extended Assured Buyback Programme

Building on the success of its pilot programme launched in February, Ather has expanded its Assured Buyback offer to a larger customer base. This initiative provides clarity on the future value of their investment, addressing concerns about resale values in the rapidly evolving EV market. The programme offers:

  • Up to 60% of the scooter's value guaranteed after three years
  • Up to 50% of the scooter's value guaranteed after four years
  • Terms are subject to the number of kilometers traveled

Extended Comprehensive Warranty

To provide customers with complete peace of mind, Ather has introduced an Extended Comprehensive Warranty. This warranty covers manufacturing defects on the battery and 11 other critical components for up to five years or 60,000 kilometers, whichever comes first. Available to all AtherStack™ Pro customers, the warranty includes coverage for:

  • Motor
  • Motor controller
  • Dashboard
  • Charger
  • Seven other critical components

Driving EV Adoption

Ravneet S Phokela, Chief Business Officer of Ather Energy, emphasized the company's commitment to addressing the barriers to EV adoption: "To unlock the segment's true potential and accelerate growth, we've rolled out a slew of initiatives to cater to the different needs of our potential customers. With BaaS, ECW, and Assured Buyback, we aim to address major barriers that exist for customers when purchasing a new EV scooter."

These initiatives directly target the three primary concerns of potential EV buyers: high upfront costs, uncertainty about resale value, and warranty concerns. By offering innovative solutions to these issues, Ather Energy is positioning itself at the forefront of India's electric mobility revolution, making electric scooters a more accessible and worry-free choice for Indian families.

As the electric vehicle market in India continues to grow, Ather Energy's latest offerings demonstrate the company's dedication to innovation and customer-centric solutions. These initiatives are expected to play a crucial role in accelerating the adoption of electric two-wheelers across the country, contributing to a greener and more sustainable future for Indian transportation.

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Ather Energy Reports Strong Q1 Results with 100% Volume Growth and Improved Margins

2 min read     Updated on 08 Aug 2025, 05:44 PM
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Reviewed by
Jubin VergheseScanX News Team
Overview

Ather Energy's Q1 performance showed significant growth and improved profitability. Units sold doubled to 46,000, total income grew 83% to INR 672.00 crores, and adjusted gross margins improved to 23%. EBITDA losses narrowed from -33% to -16%, and market share expanded to 14.3%. The company added 95 new retail stores, expanded its charging infrastructure, and saw growth in non-vehicle revenues. Ather Energy is set to unveil new platform and software updates, and has successfully transitioned to LFP battery packs.

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*this image is generated using AI for illustrative purposes only.

Ather Energy , a leading electric vehicle manufacturer, has reported robust financial results for the first quarter, demonstrating significant growth and improved profitability.

Key Highlights

  • Units sold reached 46,000, marking a 100% year-on-year increase
  • Total income grew 83% to INR 672.00 crores
  • Adjusted gross margins improved to 23%, a 700 basis points increase
  • EBITDA losses narrowed from -33% to -16%
  • Market share expanded to 14.3%, up from 7.6% in the same quarter last year

Strong Performance Across Metrics

Ather Energy's Q1 performance showcased remarkable growth across various financial and operational metrics. The company's total income surged to INR 672.00 crores, representing an 83% increase compared to the same quarter last year. This growth was primarily driven by a doubling of unit sales, which reached 46,000 vehicles.

Improved Profitability

The company's profitability metrics showed significant improvement. Adjusted gross margins reached 23%, marking a substantial 700 basis points increase year-on-year. Even excluding government incentives, margins stood at a healthy 20%. EBITDA losses narrowed considerably, improving from -33% to -16%, demonstrating the company's progress towards profitability.

Market Share Gains

Ather Energy's market share expanded to 14.3%, up from 7.6% in the same quarter last year. Notably, the company achieved market leadership in South India with a 22.8% market share, solidifying its position in key markets.

Expansion and Innovation

The company continued its aggressive expansion strategy, adding 95 new retail stores during the quarter, bringing the total to 446 stores nationwide. This rapid network expansion has been particularly impactful in Middle India, where Ather's market share grew to 10.7%, a 2.5x increase year-on-year.

Non-Vehicle Revenue Growth

Non-vehicle revenues contributed 12% to total revenue, driven by accessories, warranty programs, and software sales. The company's software offerings have shown particularly strong performance, maintaining high attach rates despite geographical expansion.

Operational Improvements

Ather Energy reported a 7% reduction in the cost of goods sold (COGS) compared to the average of the previous fiscal year, contributing to margin improvements. The company also expanded its charging infrastructure, adding 400 charging points to reach a total of 4,000 points across the country.

Future Outlook

Looking ahead, Ather Energy is set to unveil its new EL platform and Ather Stack 7 software at its Community Day event on August 30. The company has also successfully transitioned to LFP battery packs, which is expected to positively impact financials in the coming quarters.

Challenges and Opportunities

While the company faces potential short-term challenges due to rare earth magnet supply issues, management expects any impact to be limited to approximately one week of production in the current quarter. Ather Energy remains optimistic about its medium-term prospects, with strong options in place to address supply chain concerns.

Tarun Mehta, Executive Director and CEO of Ather Energy, commented on the results, stating, "Q1 for us was a very strong quarter. We saw very strong performance across all key metrics, from units sold to market share gains and margin improvements. Our focus on R&D and technology continues to drive our growth and differentiation in the market."

As Ather Energy continues to expand its presence across India and introduce new products, the company appears well-positioned to capitalize on the growing demand for electric vehicles in the Indian market.

Historical Stock Returns for Ather Energy

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