Ather Business Model: Full Breakdown & Analysis of EV Giant

“Want to fight climate change? Use EVs (Electric Vehicles) to contribute to the reduction of carbon emissions.” This is the most common approach to preventing global warming! When it comes to EVs, India is potent enough to produce EVs on its own. How? Due to indigenous EV-producing companies. And one of them is Ather Energy! It is an electric vehicle manufacturing company. Ather business model has created a sustainable and scalable solution for the country’s transportation needs.

Want to know how its business model works and makes money? Then stick to our write-up because we will dive deep into Ather Business Model.

Keep reading!

Ather Energy: A Brief Overview

It is an Indian EV manufacturing company specializing in the production of high-performance electric scooters. It has a strong focus on innovation and technology, as evidenced by its advanced electric scooters.

Before proceeding further, let’s have a quick overview of the EV company-

Next section onwards, you will get to know about the Ather Business model in detail.

Working Strategy: How does Ather Energy Work?

This company is famous for being one of the famous Indian startups fighting for climate change. And how does it combat climate change? By producing electric scooters as discussed in the introduction! Its flagship products are exclusively designed electric scooters, namely-

• Ather 450X
• Ather 450 Plus

Apart from a high speed of 80km/h, it comprises advanced lithium-ion batteries, fast charging capability, and other smart features. Such as navigation and statistics. 

Let’s look at the working strategy of Ather Energy in detail.

1. Electric Scooter Production

Ather Energy focuses on creating high-performance vehicles that offer a superior riding experience compared to traditional petrol-powered scooters. It designs and develops electric scooters from scratch. The company focuses on creating high-performance vehicles with advanced technology and a futuristic design. It prioritizes the factors like range, power, and efficiency to create an eco-friendly vehicle at an affordable cost.

2. Research & Development to produce smart EVs

The R&D department is the most crucial part of a D2C brand. After all, people purchase a product only if its quality is good enough! Likewise, Ather Energy invests heavily in research and development. Why? To continuously improve its products and stay at the forefront of EV technology. It strives to enhance battery efficiency, range, and overall performance, as well as introduce new features and innovations. 

The highly sought feature of EVs is their smartness. The EVs of Ather Energy are called “Smart Vehicles.” Reason? Explained in the next point.

3. Intelligent Touchscreen Dashboard

Ather Energy scooters come equipped with an intelligent touchscreen dashboard and connected features. The dashboard provides riders with a host of features and functionalities –

• Real-time data
• Turn-by-turn navigation
• Ride modes
• Vehicle diagnostics
• Smartphone connectivity
• Location tracking
• Software updates

This intuitive interface enhances the overall user experience and provides convenient access to vital information.

4. Ather Grid Charging Infrastructure

This EV giant has established its charging infrastructure called Ather Grid. These charging stations are strategically located across different cities. This infrastructure allows Ather scooter owners to charge their vehicles conveniently. Ather Grid provides fast-charging options to minimize the charging time and enable longer rides without range anxiety.

5. Subscription-based Model

Ather Energy operates on a subscription-based business model. In addition to purchasing the electric scooter, customers can subscribe to different plans. It offers the following benefits-

• Periodic maintenance/servicing
• Roadside assistance
• Software updates

Let me explain it in simple words. Rather than following the traditional model of outright vehicle purchase, Ather Energy offers their scooters through a subscription plan. Customers pay a monthly fee to access the benefits of the plan. This approach simplifies ownership and ensures that customers have access to the latest features and services.

6. D2C Sales

Ather Energy adopts a direct-to-consumer sales approach, bypassing the traditional dealership model. They have their own experience centers and online sales platform where customers can explore and purchase their electric scooters. This direct approach allows them to have a closer relationship with their customers and provide a seamless buying experience. 

According to the filings of the company, it expanded to 28 cities at the end of FY22. This was a massive scaling because it expanded from 9 retail stores in 9 cities in FY21. And now it is in 28 cities with over 34 retail centers. 

Revenue Sources: How does Ather Energy make money?

This is the core of Ather business model that determines whether the company is profitable or not. In FY22, Ather Energy earned revenue worth Rs.408.5 crores.

The EV giant makes money from the following revenue sources-

1. Electric Scooter Sales

Ather Energy designs, manufactures and sells electric scooters. The primary source of revenue for the company comes from the sale of these vehicles. Customers purchase Ather scooters, and the company earns revenue from the sale of each unit.

The data on its sales are given below-

It plans to install 800 more charging grids all over India. Also, it is planning to expand in Tier-2 and 3 cities. 

2. Service Charges

It provides service and maintenance support for its electric scooters. This includes periodic servicing, repairs, and replacement of parts. The company charges customers for these services, generating revenue from after-sales support.

3. Charging Infrastructure

As you have read above, Ather Energy has developed an extensive charging infrastructure network called the “Ather Grid.” It consists of charging stations strategically placed in various locations. While the charging itself may be free or subsidized for Ather vehicle owners, the company may have partnerships or collaborations with other entities, such as commercial establishments or cities, to monetize the charging infrastructure.

4. Subscription Plans

Ather Energy offers subscription plans for its electric scooters. These plans provide additional features and services such as over-the-air updates, connectivity, and performance upgrades. Customers pay a monthly or annual fee for these plans, which contribute to the company’s revenue stream.

The subscription plans are given in the image below-

5. Government Incentives

The governments provide incentives, subsidies, or tax benefits for the adoption of electric vehicles. Ather Energy may benefit from such government programs, which indirectly contribute to its revenue. Also, its smart electric scooters at affordable prices play an important role in attracting more customers. 

Marketing Strategies

Ather Energy utilizes digital marketing, including social media and online advertising, to create brand awareness and engage with customers. 

It organizes product launch events to generate buzz and attract media coverage. The company focuses on community building through meet-ups and workshops to foster brand advocacy. Content marketing positions them as thought leaders in electric mobility. 

Experience centers provide a physical space for potential customers to test-ride their electric scooters. Strategic partnerships and collaborations expand their reach and integrate their products into shared mobility solutions. 

Thus, Ather Energy aims to establish itself as a trusted and innovative brand in the electric vehicle industry.

Conclusion

Thus, Ather business model revolves around manufacturing high-quality electric scooters by incorporating advanced technology. Its approach aims to accelerate the adoption of electric mobility in India and contribute to a more sustainable future.

Ather Energy’s flagship products are the Ather 450X and the Ather 450 Plus, both of which are premium electric scooters designed for urban commutes. These scooters feature advanced lithium-ion batteries, fast charging capabilities, and top speeds of up to 80 km/h. In addition, they are equipped with a host of smart features, such as navigation, ride statistics, and remote diagnostics, which can be accessed through the Ather app.