Established in 2013, Ather Energy is a key player in India’s electric two-wheeler (E2W) market. With strong backing from Hero MotoCorp, which holds approximately a 32% stake, Ather has raised over USD 160 million and positioned itself as a premium electric scooter manufacturer. However, it faces stiff competition from major industry players like Ola Electric, Hero Electric, TVS Motor Company, and Bajaj Auto.
This article provides a comprehensive Ather Energy’s comparison with its competitors in terms of market presence, financial performance, product offerings, and future growth strategies.
Market Overview
The Indian electric two-wheeler market has been expanding rapidly. In FY 2023, 8,40,000 electric two-wheelers were sold, marking a 33% year-on-year growth. As of FY 2024, the E2W penetration stood at 5.1%, with projections indicating a rise to 35-40% by FY 2031. The growth is primarily driven by rising fuel costs, government incentives such as the Faster Adoption and Manufacturing of Hybrid and Electric Vehicles (FAME) scheme, and increasing environmental awareness.
Despite the growth, the sector faces challenges, including high initial costs, dependency on imported battery components, and the need for extensive charging infrastructure. While Ather Energy remains a premium brand in the segment, competition from mass-market players is intensifying.
Ather Energy’s Comparison with Its Competitors
1. Ather Energy vs. Ola Electric
Market Position
Ola Electric currently holds a dominant 42.4% market share, while Ather Energy has a niche but strong presence, Ather Energy holds a 12.2% market share in the latest monthly report and has averaged 9% over the first five months of FY 2025. Ola’s aggressive pricing and extensive marketing campaigns have helped it capture a larger customer base.
Financial Performance
In FY 2024, Ola Electric reported an operating revenue of INR 5,009.8 Cr, reflecting its rapid expansion and high sales volumes. Ather Energy, though not yet profitable, is preparing for an IPO to raise INR 4,500 Cr for expansion and to strengthen its market position. Ola Electric’s revenue model benefits from economies of scale, whereas Ather’s focus remains on high-end product differentiation and sustained brand loyalty.
Product Portfolio
Ola Electric offers a diverse range of products, including the Ola S1 and S1 Pro, targeting budget-conscious buyers. In contrast, Ather focuses on premium, technologically advanced scooters like the 450X and 450 Plus.
Future Growth Plans
Ola Electric is working towards vertical integration by setting up in-house battery cell manufacturing, which could provide a cost advantage in the long run. Ather Energy plans to use its IPO proceeds to scale manufacturing, enhance R&D efforts, and expand its charging infrastructure, which is crucial for long-term growth.
2. Ather Energy vs. Hero Electric
Market Position
Hero Electric, the largest E2W player, had a market share of 30-31% in 2021, selling 46,260 units. It operates across 325 cities with over 600 dealership networks.
Financial and Operational Strength
Hero Electric benefits from its extensive dealership network and lower-cost product range (INR 46,640 to INR 83,940). Ather, with its premium positioning, focuses on direct-to-consumer (D2C) sales and digital marketing strategies.
3. Ather Energy vs. TVS Motor Company
Market Position
TVS Motor Company, a veteran in the Indian two-wheeler industry, has established itself as a formidable player in the EV segment. While Ather is a dedicated electric vehicle manufacturer, TVS benefits from a diversified portfolio that includes both internal combustion engine (ICE) vehicles and EVs.
Financial Performance
TVS enjoys financial stability and strong profitability, supported by a diversified portfolio. Ather, still in the growth phase, depends on external funding and its upcoming IPO for financial expansion.
Product Portfolio & Expansion
While TVS benefits from a strong dealership network, Ather differentiates itself through technology-driven innovations like cloud connectivity, OTA updates, and smart charging solutions. TVS is leveraging its extensive network to scale its EV penetration, while Ather is focused on enhancing its premium offerings.
4. Ather Energy vs. Bajaj Auto
Market Position
Bajaj Auto, a traditional powerhouse in the two-wheeler industry, is increasing its focus on the EV segment, primarily through its Chetak electric scooter. While Bajaj Auto has a strong foothold in conventional motorcycles and scooters, its EV penetration remains lower than newer players like Ather and Ola.
Financial and Operational Strength
Bajaj Auto enjoys financial resilience due to its diverse product range and international markets. Unlike Ather, which is reliant on external funding and an upcoming IPO, Bajaj has the advantage of self-sustaining revenue streams, making it a financially stronger player in the market.
Product Strategy
Bajaj banks on its brand legacy, while Ather is focused on tech-driven performance. Bajaj is expanding its EV range gradually, while Ather prioritizes aggressive R&D and charging infrastructure expansion.
Future Growth Plans
Bajaj Auto is gradually expanding its EV portfolio while leveraging its widespread dealership network for distribution. Ather Energy plans to use its IPO funds to accelerate production, introduce new models, and strengthen its infrastructure to maintain its competitive edge.
Strengths and Challenges of Ather Energy
Strengths:
- First-mover advantage: Ather Energy was one of the first companies to launch a smart electric scooter in India, giving it a first-mover advantage. The Ather 450 was the first electric scooter in India with a top speed of 80 km/h, fast charging, cloud integration, and OTA software updates.
- Largest charging network: Ather Grid comprises over 2,500 chargers across 230 cities.
- Premium product positioning: High-quality build, superior technology, and advanced connectivity features.
- Strong R&D and innovation: Focus on in-house battery development and smart vehicle diagnostics.
Challenges:
- Profitability concerns: High operational costs have kept the company in losses.
- Limited market reach: Compared to Ola Electric and Hero Electric, Ather has focused primarily on urban markets.
- Competition from well-funded rivals: Ola Electric’s aggressive pricing strategy is a significant challenge.
- Regulatory uncertainties: Dependence on government subsidies and policies could impact financial performance.
Future Strategies for Ather Energy
To sustain its growth and competitiveness, Ather Energy needs to:
- Expand market reach: Target Tier-2 and Tier-3 cities to increase adoption.
- Increase production capacity: Scale up manufacturing to meet rising demand.
- Optimize costs: Enhance operational efficiency to compete with lower-priced rivals.
- Strengthen technological leadership: Invest in next-gen battery technology and smart mobility features.
- Enhance customer experience: Provide better after-sales services and seamless user support.
Conclusion
Ather Energy has established itself as a premium electric two-wheeler manufacturer in a market dominated by legacy automakers and aggressive startups. While Ola Electric leads in volume sales, and TVS and Bajaj leverage their dealership networks, Ather’s success hinges on its ability to scale efficiently and maintain technological superiority.
The upcoming IPO is expected to provide the necessary financial push for Ather to expand operations and enhance its competitive positioning. With India’s EV revolution gaining momentum, Ather’s journey in the public markets will be closely watched as it navigates the challenges of profitability, competition, and market expansion.