How Ather Energy Vehicle Factory scaling in the EVs segment ?

Ather Energy, one of the most popular electric vehicle (EV) makers in India, is on a mission to revolutionize the two-wheeler industry with its smart, connected, and eco-friendly scooters. The Bengaluru-based startup, founded in 2013 by IIT graduates Tarun Mehta and Swapnil Jain, has been growing rapidly in terms of product innovation, customer base, and market presence.

In this article, we will look at how Ather Energy Vehicle Factory is scaling up its production and market share in the electric two-wheeler segment, with a focus on its new manufacturing facility in Hosur, Tamil Nadu.

Ather’s product portfolio: Ather 450X and Ather 450 Plus

Ather Energy currently offers two models of electric scooters: the Ather 450X and the Ather 450 Plus. Both models are designed and developed in-house by Ather, with over 90% of the components being localized. The scooters are equipped with features such as, a sleek and futuristic design, a touchscreen dashboard with navigation and Bluetooth connectivity, a lithium-ion battery pack, a brushless DC motor, and a belt drive transmission. The scooters also come with various smart features, such as OTA updates, remote diagnostics, theft and tow detection, and geofencing.

The Ather 450X is the flagship model of the company, which claims to be the fastest and most advanced electric scooter in India. It has a top speed of 80 km/h, a range of 85 km in eco mode, and a 0-40 km/h acceleration time of 3.3 seconds. It also has four riding modes: eco, ride, sport, and warp.

The Ather 450 Plus is a slightly lower-spec variant of the Ather 450X, with a top speed of 70 km/h, a range of 70 km in eco mode, and a 0-40 km/h acceleration time of 3.9 seconds. It has three riding modes: eco, ride, and sport.

Ather also offers various financing and leasing options, as well as a subscription plan called Ather One, which covers the cost of charging, data, maintenance, and roadside assistance.​

Ather’s new manufacturing facility in Hosur: A model of efficiency and sustainability

The company's commitment to elevating the electric vehicle (EV) experience is evident in its plans for the Ather Energy Vehicle Factory. With aspirations to boost production capacity from 1.20 lakh vehicles to an impressive 4 lakh vehicles, Ather Energy Vehicle Factory is gearing up for a significant leap in the EV market.

To meet the growing demand for its electric scooters and expand its market presence across the country, Ather Energy has recently commissioned its new manufacturing facility in Hosur, Tamil Nadu. The new facility, which was inaugurated in February 2021, is spread over 123,000 sq. ft.

The new facility was a big step up for Ather from its previous plant in Whitefield, Bengaluru, which had a monthly production capacity of just 1,750 units. The new facility is also a model of efficiency and sustainability, as it incorporates automation, IoT, and waste management technologies. According to Ather’s CTO and co-founder Swapnil Jain, the new facility is 100% IoT-based, whereas the previous plant only used IoT in its battery line. Moreover, the new facility has been able to improve the company’s overall ‘take time’ (the time taken to manufacture and assemble a product) by 10X and ‘work content’ (the number of hours put into manufacturing one vehicle) by 4X.

The new facility also ensures that the manufacturing process is environmentally friendly, by recycling and reusing industrial waste within the complex. For instance, wastewater is recycled into the septic tank water to power flushes, while the energy discharged by batteries during testing is reabsorbed by the grid and is used again to test the charge/discharge cycle for other batteries.

The new facility currently handles the production of Ather’s third-generation scooters, the Ather 450X and the Ather 450 Plus, along with the existing ones. Ather plans to further expand its production capacity by setting up more manufacturing units in the future, with the aim of building its largest ever factory.

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Market Share Milestones  

As of May 2023, Ather Energy has solidified its presence in the electric two-wheeler segment, holding a notable market share of 15.1%. This achievement positions the company as the third-largest player in the industry, reflecting the resonance of their products in an increasingly eco-conscious market.

Ather Energy has also been recognized and awarded for its innovation and excellence in the electric vehicle industry. The company has won several accolades, such as the NDTV Car and Bike Awards, the Autocar India Awards, the Edison Awards, and the Frost and Sullivan Awards. Ather Energy has also been backed by reputed investors, such as Hero MotoCorp, Tiger Global, Sachin Bansal, and Flipkart.

Ather’s market presence and growth

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Ather Energy has been witnessing a strong growth in its market presence and customer base, as the demand for electric two-wheelers in India is increasing. Ather Energy has been a leader in this segment, with a market share of over 50% in the high-speed electric scooter category.

A pivotal move in Ather Energy's growth trajectory is the transition from 9 retail stores in FY21 to a notable 34 experience stores by FY22, strategically positioned in 28 cities. What sets this expansion apart is the shift from company-owned stores to a majority of dealer-run stores. Out of the 34 stores, an impressive 31 are now operated by dealers, showcasing a collaborative approach to reaching a wider audience.

In pursuit of higher market share, Ather Energy has been actively diversifying its retail footprint, aligning with a dynamic market landscape. This evolution in the retail strategy is a testament to the company's adaptability and responsiveness to consumer needs.

Ather Energy currently operates in 11 cities in India. The company plans to expand to 27 more cities by the end of 2021, including Kolkata, Indore, Bhubaneswar, Nagpur, Surat, and Lucknow. Ather also has a network of over 120 charging stations, called Ather Grid, across these cities, which offer free and fast charging to its customers.

Ather Energy has also received positive feedback and reviews from its customers, who appreciate the performance, design, and features of its electric scooters. The company has a customer satisfaction score of 4.6 out of 5, based on over 2,000 ratings on Google. Ather also has a loyal fan base, who actively participate in online forums, events, and referrals. The company claims that over 30% of its sales come from referrals.

Strategic Insights

Ather Energy's strategic partnership with Hero MotoCorp Limited, one of India's premier two-wheeler manufacturers, adds a layer of industry expertise and scale to their operations. This collaboration underscores Ather Energy's commitment to leveraging synergies and staying at the forefront of electric mobility advancements.

Ather Energy Vehicle Factory Journey Towards a Greener Future

In conclusion, Ather Energy's ongoing efforts to scale up production at the Ather Energy Vehicle Factory reflect a dynamic approach to meet the growing demand for electric scooters in India. As the company navigates market trends, collaborates with dealers, and solidifies its position as a major industry player, Ather Energy is not just manufacturing vehicles; it is crafting a sustainable and innovative future for electric mobility.

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