September 28, 2023

Indian electric scooter maker Ather Energy will accelerate new model launches at home and test export markets, its chief executive told Reuters, raising new money to boost growth after the government lowered subsidies for the vehicles.

India’s electric scooter market is small but growing, with e-models accounting for 5 percent of total scooter and motorcycle sales in the last fiscal year against a government target of 70 percent by 2030.

But in a surprise move in May, the government, without explanation, slashed cash incentives on the vehicles to a maximum of 15 percent of the price before taxes from 40 percent earlier. The next month total e-scooter sales more than halved.

Ather’s sales also dropped but are rapidly picking up. CEO Tarun Mehta said in an interview that the company is now working on two new models, one of which will be launched six months earlier than originally planned.

“The transition to electric vehicles could have been faster if not for the (subsidy) change but even then, there will be no major impact in the mid to long term,” he said.

“This shift means we are having to fast track product launches and invest more in product development,” he added.

As part of a long-term growth strategy, Ather is aiming for more than 50 percent of its sales to come from global markets by the end of the century, Mehta said. 

Ather, India’s third-largest e-scooter maker after Softbank Group-backed Ola Electric and local TVS Motor, plans to add a scooter designed for use by different members of a family to its current two-model lineup aimed at individual riders, Mehta said. 

Valued at around $750 million (nearly Rs. 6,250 crore), Ather will raise more money before the end of 2023 to back its growth plans, he said, without giving more details.

A source with direct knowledge of Ather’s plans said the company is looking to raise an amount similar to the $108 million (nearly Rs. 900 crore) garnered from existing shareholders Hero MotoCorp and Singapore’s sovereign wealth fund GIC in a recent rights issue. 

Ather will also pilot sales in one Asian export market in a couple of months.

“India will not only be the largest market in the world for electric two-wheelers but also the largest exporter,” he said.

© Thomson Reuters 2023

Affiliate links may be automatically generated – see our ethics statement for details.

Source link

Leave a Reply

Your email address will not be published. Required fields are marked *

Batman138 Bro138 Dolar138 Gas138 Gudang138 Hoki99 Ligaciputra Panen77 Zeus138 Kilat77 Planet88 Gaspol168 Sikat88 Rupiah138 Garuda138 Gacor77 Roma77 Sensa138 Panen138 Slot138 Gaco88 Elanggame Candy99 Cair77 Max7 Best188 Space77 Sky77 Luxury777 Maxwin138 Bosswin168 Cocol88 Slot5000 Babe138 Luxury138 Jet77 Bonanza138 Bos88 Aquaslot Taktik88 Lord88 Indobet Slot69 Paus138 Tiktok88 Panengg Bingo4d Stars77 77dragon Warung168 Receh88 Online138 Tambang88 Asia77 Klik4d Bdslot88 Gajah138 Bigwin138 Markas138 Yuk69 Emas168 Key4d Harta138  Gopek178 Imbaslot Imbajp Deluna4d Luxury333 Pentaslot Luxury111 Cair77 Gboslot Pandora188 Olxtoto Slotvip Eslot Kuy138 Imbagacor Bimabet