Ather Electric Scooter Sales registered 353% YoY Growth in March 2023

India’s automotive industry has been growing despite global geopolitical and economic uncertainties, and FY 2022-23 has been a particularly good year for the industry. Most original equipment manufacturers (OEMs), including those in the two-wheeler space, have reported robust sales, both in internal combustion engine (ICE)-based and electric vehicles (EVs). Ather, a leading EV manufacturer in the country, has been among the OEMs that have registered strong growth in FY 2022-23.

Ather Proactively Expands Retail Footprint and Fast-charging Network

To encourage faster adoption of its electric scooters, Ather has been consistently adding new retail outlets across the country, increasing from 30 to 116 stores in FY’23. The company has also been expanding its network of fast-charging stations, adding more than 900 charging points in FY23. Ather now has 1224 fast charging stations, making it the country's largest two-wheeler fast charging network. Ather has also collaborated with third parties to set up charging stations at strategic locations, such as partnering with Southern Railways to install charging stations at ten MRTS and suburban stations in Chennai.

Ather Registers Strong Sales in Q1 2023 Despite Chip Shortage Impact

Despite the impact of the global chip shortage, Ather has reported strong sales in Q1 2023, with 36k units sold, which is a 383% YoY growth over Q1 2022. Ather expects that their sales momentum will continue in FY’24. According to Ravneet Singh Phokela, Chief Business Officer at Ather Energy, sales could have been higher if the chip shortage had not impacted operations in the first six months of FY’23.

Ather Electric Scooter Sales registered 353% YoY Growth in March 2023

In March 2023, Ather registered a staggering YoY growth of 353.65%, selling 11,754 units as compared to 2,591 units sold in the same period last year. However, Ather’s MoM growth in March 2023 was negative at -3.24%, with sales higher in February 2023 at 12,147 units. Total sales in FY’23 were 82,146 units.

Ather Pricing hurdle for a Wider Customer Base

While Ather 450X is one of the most well-equipped electric scooters in the country, its high pricing limits its customer base. The Ather 450X price in Bengaluru starts at Rs 1,58,462 (Including FAME II subsidy), which may not be within reach of a significant percentage of potential buyers looking for an electric scooter for everyday commutes. Ather can take inspiration from Ola Electric, which has launched affordable versions of its S1 electric scooter, primarily by using a smaller capacity battery pack, reducing range but offering more affordable pricing. A new affordable Ather launch is expected later this year.

Conclusion

Ather’s proactive expansion of its retail footprint and the fast-charging network has contributed to its strong growth in FY 2022-23, with 82,146 units sold. Despite the impact of the global chip shortage, Ather registered strong sales growth in FY 2022-23, with March 2023 sales reaching 11,754 units, a staggering YoY growth of 353.65% compared to the corresponding period last year when only 2,591 units were sold. 

These figures indicate that Ather is making significant progress in establishing itself as India's leading electric scooter manufacturer. The company's sales momentum will continue in the upcoming fiscal year. Ather has been proactively expanding its retail footprint and fast-charging nationwide network. Despite these efforts, one significant hurdle that Ather still faces is the high pricing of its 450X model, which limits its customer base. The company is expected to launch a more affordable version of its electric scooter later this year. In this article, we will look closer at Ather's recent sales performance, its efforts to expand its retail and charging network, and its challenges in making electric mobility accessible to a wider audience.