Ahead of its much-awaited public listing, Hyundai Motor India’s managing director (MD) Unsoo Kim has said that the Indian EV market is poised for “strong and steady” growth until 2030. 

The automaker’s MD has projected that this growth will likely come on the back of an increased focus from various companies on the local market and robust government support. Further reflecting on the Indian EV market, Kim noted that the country is at an “early stage of electrification”.

“We believe that the Indian EV market is expected to grow strongly and steadily by 2030, mostly led by the government’s strong leadership and many OEMs’ focus on this segment. HMIL has access to global battery technologies, so we are developing an EV ecosystem,” Kim added.

Despite his optimism, data from the Federation of Automobile Dealers Associations (FADA) indicated a concerning trend in September 2024, with electric car sales dropping by 8% year-on-year (YoY) to 5,874 units. 

Meanwhile, Hyundai Motor India Limited’s (HMIL) chief operating officer (COO) Tarun Garg pointed out that the slowdown in the Indian EV market should not be compared with the global EV market, as the latter relatively has a much higher level of EV penetration. 

“We are still at a low level of electrification. There is only one way up,” Garg added. 

For the uninitiated, Hyundai Motor India has announced plans for India’s largest-ever IPO and aims to raise INR 27,870 Cr (around $3.3 Bn). The company’s IPO will comprise solely of an offer for sale (OFS) component of 14.2 Cr shares, which will see parent Hyundai Motor Corporation (HMC) offload its stake.

This will dilute HMC’s stake from 100% to 82.5% initially, and the company has plans to further reduce it to 75% over the next few years to comply with regulatory requirements. 

The development comes at a time when the Indian EV space is witnessing healthy growth on the back of government subsidies and production-linked-incentives (PLIs), as well as a surge in investments. 

The post Hyundai India MD Predicts “Strong & Steady” EV Market Growth Until 2030 appeared first on Inc42 Media.

When Ola Electric was gearing up for its IPO, there was palpable excitement among investors for the first public offering from the automobile sector in two decades. In stark contrast, now that Ather Energy is set for a public listing, the mood is sombre.

At least some of the excitement around Ola Electric has given way to fears about profitability, and the stock has been in something of a free fall as the market adjusts to the long trajectory for breakeven, and multiple years of losses for the Bhavish Aggarwal-led EV giant.

And with many investors now sitting on losses when it comes to their Ola Electric holding, naturally, there are some questions and concerns around Ather Energy’s valuation and the potential pricing of the INR 4,500 Cr+ IPO.

In the latest news, Ather Energy has secured the second spot in September 2024 sales. However, examining the FY 25 electric two-wheeler sales data, Ather has fallen to fourth place, losing its third position to Bajaj Chetak. Bajaj has increased its market share from 11% in FY 24 to 14% in FY 25, while Ather’s market share has declined from 12% in FY 24 to approximately 10% in FY 25.

Given that September 2024 sales have stagnated, Ather’s light asset model may appeal to investors as a calculated risk compared to the heavily invested Ola Electric.

However, given that EV benchmarks and multiples have not yet crystallised, Ola Electric is arguably the closest and truest comparison for Ather Energy. So with Ola Electric’s valuation now under $4 Bn after two months of listing after touching a high of nearly $8 Bn in August, is Ather Energy also risking a devaluation soon after listing?

Usually, the unlisted securities market is a great way for us to track the valuations and the pricing that pre-IPO companies might trend towards. According to reports, Ather Energy is targeting a valuation of around $2.5 Bn for its IPO, almost double the $1.3 Bn valuation at which it raised $70 Mn in August this year.

But as market observers told Inc42, the question is not just about valuation alone. It’s also about key differences in the business models i.e the vertical integration at Ola Electric and Ather Energy. 

Among the key differences are:

• Market Focus: Ola aims to produce mass-market vehicles, while Ather is perceived as a provider of premium vehicles.
• Cell Production: Ola Electric intends to manufacture its cells, whereas Ather relies on its vendors for cell supplies.
• Service and Experience Centres: Ola owns its 800+ experience centres and 431 service centres. In contrast, Ather has 211 experience centres and 192 service centres, with only one owned by the company; third-party retail partners operate the rest.

These two companies come from vastly different trajectories. Ola has gone for the blitzscaling approach, whereas Ather claims its long-term strategic investment is better for the automobile industry. 

In terms of sales, Ola Electric has outpaced Ather significantly in the past two years, but Ather still gets the thumbs-up from industry insiders when it comes to product quality.  So when we look at the Ather and Ola Electric battle — beyond sales and revenue — we have to consider the EV stack, the positioning of these two EV trailblazers.

How Ather Energy Stacks Up Vs Ola

A straight apples-to-apples comparison is not possible though, given that Ola Electric is looking to build the complete stack for EVs, while Ather Energy is working more in the mould of an OEM. 

For instance, as we highlighted recently, Ola Electric has nearly a dozen subsidiaries and is deeply involved in in-house manufacturing of key components—including battery cells. On the other hand, Ather Energy has consciously chosen to remain relatively asset-light, operating as a single registered company without entering the cell manufacturing sector, for instance, and has not committed to launching new products like Ola Electric.

Umesh Chandra Paliwal, founder and CEO of UnlistedZone, believes Ola’s model has its advantages, but it does require a lot more operational oversight. 

By controlling the supply chain, especially when the battery along with controller constitutes about 50% of an EV’s manufacturing cost, Ola Electric can optimise production costs and improve its margins. Additionally, Ola operates its own showrooms and service centres, providing customers with a complete in-house experience that strengthens brand control.

In contrast, Ather manufactures EVs but does not produce its battery-cells. Furthermore, Ather’s experience centres and service networks are managed by third-party partners as is the case for traditional ICE vehicles. And finally, Ather’s scooters are positioned as premium products, with a strong focus on delivering a high-quality user experience, which justifies their higher price point. 

And this comparison reminds Paliwal and others of the battle between Apple and Android smartphone makers such as Samsung. Both models have proven effective to some extent, but each has its pros and cons. 

Is Going Asset-Light In Ather’s Favour?

One key concern raised about Ather is that, unlike Ola Electric, Ather does have no control on 50% of its costs due to the dependency on others for the cells. This limits the EV company’s ability to reduce costs further, a problem that Ola has looked to tackle through vertical integration. 

However, Vinkesh Gulati, a member of the executive committee, Federation of Automobile Dealers Associations, asserts that comparing Ather Energy with Ola Electric is unfair. Ather is viewed as a premium electric two-wheeler brand having technically advanced and unique products , while Ola is recognised for mass-market vehicles. As a result, even though Ather may not have control over cell costs, consumers are still willing to pay a premium for its products. 

At the same time, as the EV sales tanked in September, 2024, Ather’s business model is being seen as more agile. The asset-light model does allow Ather to pivot more easily over time, especially for components and parts where technology standards change routinely. For instance, if sodium-ion batteries become the standard and lithium-ion technology becomes obsolete, Ather could quickly adapt to sodium without losing much in the process, unlike Ola, which would need to rewire a lot of its operations. 

Unlike Ather Energy, Ola has taken on the task of cell manufacturing, and the establishment of gigafactories under the government’s PLI scheme is expected to accelerate this vertical. 

What this means is that Ola might suffer from supply chain and pricing fluctuations for raw materials (such as cathode and anode minerals), especially as it scales up cell manufacturing and increases the domestic component mix as has been mandated by the government. 

This is most evident from the fact that Ola spent nearly 100% of its annual revenue on procurement of materials alone in FY22 and FY23. This has reduced slightly in FY24, but given the revenue base, it is still a significant investment.

Ensuring access to raw materials will be increasingly important in the long run as the EV ecosystem grows, and companies need to implement de-risking strategies to mitigate potential supply chain disruptions, according to Gulati and others. 

Raw materials account for over 60% of cell production costs, for instance. Given India’s dependency on imports for raw materials for cell manufacturing, future Ola Gigafactories may face pricing pressures from raw material suppliers and EV manufacturers. 

In terms of R&D expenditure, Ola Electric outspends Ather. As of FY 2024, Ather allocates 6.6% of its operational revenue to R&D, while Ola Electric invests 7.69%. This investment is also reflected in their intellectual property (IP) portfolios. Ather has acquired 45 patents and has 210 patent applications pending, whereas Ola Electric has secured 88 patents and currently has 217 applications pending.

At the moment, it’s not clear whether Ather will invest in cell manufacturing in the long run, but for the time being, it does have a bit of a cost advantage in case there are any changes in terms of the battery technology or disruption to the raw material supply chain. 

The disadvantage for Ather Energy, of course, is that since it is not manufacturing cells, it will have to spend more to acquire batteries for its vehicles in case of any supply chain disruptions, but Ather Energy has protected itself against a potential price hike by positioning its products in the premium price tier, as opposed to Ola Electric. 

Are Ather EVs Better Than Ola Electric?

Despite not having complete control over its vehicle manufacturing, Ather’s electric two-wheelers (E2Ws) are perceived to be better than Ola Electric. 

“Ola Electric may have invested significantly more in research and development, however, Ather Energy’s scooters are recognised for providing a superior riding experience compared to competitors,” according to a former head of Royal Enfield’s electric segment. 

However, a cursory glance at the specifications shows that Ather trails Ola Electric’s product lineup in terms of vehicle range, speed, and motor power, some of the key aspects that appeal a lot to Indian EV buyers. Ather also struggles to match Ola Electric’s pricing perhaps due to the ‘scale’ differences. 

So what makes Ather supposedly better than Ola? Often the reason is subjective. 

One wonders how much of the premium charged by Ather goes towards ensuring that its customers have fewer complaints about the product quality. 

“If you are positioning your brand as a premium offering, your advertising and marketing expenses will be higher, even if sales are lower. However, in Ather’s case, this spending has not translated into brand visibility or premium positioning. Things have improved over the last year, but I still believe Ather needs to reassess how it is spending its money in advertisements and marketing,” said an advertising expert who led multiple brand campaigns for one of the top five E2W manufacturers in 2023.

Despite being perceived as a premium brand, Ather is not currently charging or being able to charge a premium price from its customers. The branding cost therefore only adds to the cost without the ‘premium share’ of revenue. Ather certainly needs to improve its positioning in this regard, he added.

Experts believe that due to its procurement-led model, and the fact that it cannot match Ola’s capital investment in R&D, Ather is compelled to go for the premium category. The company is sacrificing volume for margins. 

Why Valuation Will Be Critical 

However, given the market sentiment for EV investments and Ather’s strong performance in terms of product value, experts believe Ather Energy’s IPO will be oversubscribed. However, like Ola Electric, it may witness a decline thereafter because Ather’s path to profitability is also not clear.

Unlistedzone’s Paliwal believes Ather Energy has made a compelling case for itself for investors thanks to the customer feedback on quality, Ather’s long-term strategy when it comes to the manufacturing platform, and its focus on the premium market, where Ola needs to prove itself. 

These are good indicators for Ather Energy since they signal value to potential shareholders. 

Plus, with Ola Electric’s successful listing providing a reference point to investors, Ather could benefit from the growing investor interest in the Indian EV sector, which is expected to grow at a robust 40-44% CAGR over the next five years, according to Paliwal.

That bullishness is tempered with the caution that the pricing and valuation will be a critical aspect for Ather’s IPO. As seen in the case of Ola Electric, the market cap is now hovering around INR 40,000 Cr, much lower than the listing valuation. Has Ather done enough to justify the $2.5 Bn valuation that it is said to be seeking in the IPO?

Cofounder and CEO Tarun Mehta has repeatedly emphasised that Ather Energy is undervalued in the private valuation landscape. How much merit does this claim hold? Ola Electric slashed its valuation by over 35% for its IPO to succeed and it’s still struggling to meet that valuation. 

Ather Energy does not have the sales momentum of Ola Electric nor does it have the vertical integration, so does the company need to adopt a more cautious approach?

“Given Ather’s declining revenue in FY24 due to the reduction in subsidies and intense competition in the EV space, a valuation closer to $2 Bn may be more appropriate, providing a buffer against Ola Electric,” Unlistedzone’s Paliwal responded

So while Ather’s premium positioning and long-term strategic bet can attract investors, a more conservative valuation is perhaps better to stoke investor confidence.

[Edited By Nikhil Subramaniam]

The post Ather Energy Vs Ola Electric: A Battle Of Business Models And Positioning appeared first on Inc42 Media.

Electric two-wheeler registrations in India seem to be witnessing another trend shift as the escooter sales of Bajaj Auto touched an all-time high in September, surpassing TVS Motor and inching closer towards Ola Electric’s registrations.

Bajaj Auto recorded 18,933 EV registrations last month, growing from 16,650 units in August this year, as per Vahan data as of October 1. On a year-on-year (YoY) basis, the legacy automotive player witnessed a 166% jump in its Bajaj Chetak sales.

Its market share also increased to a little over 21% last month from 19% in August.

Overall, electric two-wheeler registrations grew marginally by 1% to 88,156 units in September from 87,257 units in August. On a YoY basis, registrations rose over 37% last month.

Recently listed electric mobility startup Ola Electric continued to maintain its top position last month, but its escooter registrations slipped 11% month-on-month (MoM) to 23,965 units. This was also the company’s lowest monthly vehicle sales since October last year, when registrations stood at 23,594 units.

Meanwhile, the Bhavish Aggarwal-led startup also continued to see decline in its market share in the electric two-wheeler market. From a little over 30% market share in August, the EV startup’s share fell to 27% in September.

To address this, Ola Electric recently launched “HyperService” to offer “one-day resolution” of service-related issues. It is pertinent to note that the company has been facing numerous complaints from customers about after-sales service on social media platforms.

Despite this, brokerage Bernstein believes that Ola Electric is on track to achieve EBITDA profitability. It also said recently that Ola Electric has the highest gross margin among its peers. 

Though TVS Motor fell behind Bajaj, its escooter registrations rose 2% MoM to 17,865 units in September. The legacy motorcycle maker’s share in the electric two-wheeler market also increased marginally to a little over 20%.

On the other hand, ahead of its public market debut, Ather Energy is also seeing a rise in its EV sales and market shares. Despite an overall slowdown in escooter sales, Ather’s vehicle registrations jumped over 15% to 12,579 units in September from 10,919 units in the previous month.

Ather also saw an over 75% rise in its vehicle sales on a YoY basis, while its market share increased to over 14% in September as against 12% in August.

However, legacy automotive player Hero MotoCorp, which is also a major shareholder in Ather, continues to face pressure in the electric two-wheeler market. Though its EV sales have grown sharply compared to the beginning of the year, Hero MotoCorp’s electric two-wheeler registrations fell over 9% MoM to 4,174 units last month.

Its EV registrations stood at 4,596 units in August as against 4,945 units in July.

On the other hand, some of the newest electric two-wheeler startups, including River and Ultraviolette, are witnessing slow but steady growth. River’s EV registrations increased 7% MoM to 297 units in September, while Ultraviolette’s electric motorcycle registrations grew to 51 units during the month from 47 units in August.

It is pertinent to note that the sales of two-wheeler EVs underwent significant volatility this year amid the government lowering the demand subsidy under the FAME scheme. While the industry was waiting for the third iteration of the Centre’s FAME scheme, the cabinet approved a new scheme in September—the ‘PM Electric Drive Revolution in Innovative Vehicle Enhancement (PM E-DRIVE) Scheme’.

The new scheme has an initial outlay of INR 10,900 Cr for a period of two years to support EV adoption. The scheme aims to support 24.79 Lakh electric two-wheelers (E2Ws), along with other vehicle categories. The Centre’s previous subsidy scheme FAME-II aimed to support 10 Lakh two-wheeler EVs.

Overall, total EV registrations in the country, across vehicle categories, stood at 1.66 Lakh units last month, growing from 1.65 Lakh units in August. With the festive season ahead, EV manufacturers will be hoping for a rise in sales in the coming months.

The post Two-Wheeler EV Sales Slowdown In Sept; Ola Electric’s Market Share Drops, Bajaj Overtakes TVS appeared first on Inc42 Media.

With ‘electric vehicle’ emerging as a buzzword in the Indian automobile space, early stage venture capital firm’s partner Arpit Agarwal believes that India has a long road ahead. 

Speaking at a panel discussion during Inc42’s Money X, Agarwal said that the country’s EV capacity is about 20 years behind China.

“India’s electric vehicle capabilities are years behind China’s dominant position in the space. While China’s electric vehicle cell production capacity is somewhere north of 500 Gwh, India’s battery production capacity is only slated to grow to about 30-40 Gwh. Our battery manufacturing capabilities can only grow further if our dependencies for critical minerals used in production come down,” he said during the session. 

The comments come at a time when the country is just seeing the installation of EV battery factories. Earlier this month, the government awarded production-linked incentives for 10 GWh of advanced chemistry cell (ACC) manufacturing to four entities. The entities include Reliance Industries, Reliance Energy, Ola Electric and Rajesh Exports. 

The union cabinet approved the PLI scheme for manufacturing ACC batteries in May 2021 to boost India’s electric mobility and battery storage capabilities. The scheme has an outlay of INR 18,100 Cr to achieve manufacturing capacity of 50 GWh of ACC and 5 GWh of “niche” ACC.

Besides this, the Centre also announced customs duty exemption on 25 critical minerals, including cobalt, lithium, copper, which are essential for EVs. Commenting on the government push, Agarwal believes that more subsidies likely for EVs as shifting to electric mobility is a priority for India considering the high oil import bill.

Besides Agarwal, the panel discussion also featured Hero MotoCorp’s Nitai Utkarsh, India Early Stage Fund’s Anup Jain and Inc42’s senior editor Nikhil Subramaniam. 

During the panel discussion, the panellists concurred that EV adoption in India is a long task and would see emergence of small, local scale players across the country. One of the major reasons behind this is the fact that there are multiple tech infrastructures required throughout the production of an electric vehicle. 

Expanding on Hero’s EV investment strategy, Utkarsh said that the company looks at investing in smaller companies that plug in critical gaps in the EV manufacturing cycle. 

The post Indian EV Capabilities 20 Years Behind China: Blume’s Arpit Agarwal appeared first on Inc42 Media.

India’s EV landscape is undergoing a paradigm shift as the nation moves beyond electric two- and three-wheelers to embrace heavy-duty electric vehicles. 

For context, electric buses are slowly becoming more common on Indian roads. In addition, thanks to the country’s growing EV infrastructure and the government’s policy initiatives, electric truck manufacturers are also entering the picture.

Besides, heavy-duty electric commercial vehicles for sectors like construction and agriculture are soon to become a common spectacle in the Indian EV space estimated to breach the $110.74 Bn mark by 2029.

In his recent interview with Inc42, Kunal Khattar of AdvantEdge, one of the top EV investors in India, said that it is the B2B and commercial use cases, more than personal mobility, that will prompt the adoption of EVs in the country.

At this crucial stage, Delhi NCR-based AutoNxt Automation wants to spearhead the country’s EV revolution with its electric tractors that can be used for agricultural purposes, like farm tilling and carrying agricultural products, as well as for industrial use.

AutoNxt, with its electric tractors, not only aims to aid the country in getting rid of pollution-causing, diesel-guzzling tractors but also help farmers lower their farming costs. 

Currently, in its portfolio of offerings, the startup only has one electric tractor, with more innovative tractors on the anvil.

With its range of electric tractors, AutoNxt has set its eyes on capturing the Indian tractor market. Notably, as per the Tractor and Mechanization Association (TMA), the apex body representing tractor and agricultural equipment manufacturers in India, data total sales of tractors, including exports, stood at over 6 Lakh units in the first eight months of 2024. 

While demand in this market fluctuates each year due to seasonal factors, it remains largely robust, driven by exports and non-agricultural sectors. All in all, AutoNxt’s larger aim is to lock horns with legacy players, including Mahindra & Mahindra, John Deere India, and Swaraj Tractor.

Now, before diving into the startup’s plan of action, let’s take a look at its origin story.

AutoNxt’s Inception Story 

AutoNxt was founded in 2016 by Kaustubh Dhonde, who was then a fresh electronic engineering graduate from Dr. D. Y. Patil Vidyapeeth, Pune. 

As an engineer with a passion for robotics and autonomous technology, Dhonde found himself at a career crossroads after graduation. Rather than pursuing a conventional path, he chose entrepreneurship.

Coming from a farmers’ family, Dhonde knew that operating old tractors was a big challenge for farmers due to costs and difficulty in finding labourers to operate them. This made him focus on electric tractors, paving the way for the birth of AutoNxt.

While AutoNxt was founded particularly to solve the issues that farmers face with diesel tractors, the initial years of the startup were difficult as the EV wave had yet to gain significant traction in the country.

At the time, the venture was unique, so raising external funding was difficult for the founder. In a bid to survive, AutoNxt began producing GPS tracking devices and securing MSMEs as customers.

In 2021, AutoNxt was back to its original goals and started working on building electric tractors. The startup picked up momentum when Pankaj Goyal joined AutoNxt as the cofounder and chief operating officer, bringing with him decades of experience from his stints at companies like Schneider Electric, Maruti Suzuki, and others.

“Pankaj was the missing piece in the puzzle that I needed to get the concept and R&D to a product level. We had already developed an R&D prototype, but that was not enough for us to make it commercially viable,” founder and CEO Dhonde said. 

The duo then worked on building a 45 HP tractor, which is a popular choice in India. Finally, after two years, in August 2024, the startup launched its tractor, securing all certifications, including from iCAT.

Currently, AutoNxt’s electric tractors are deployed at 10 sites, per the founders. They added that while their 45 HP tractor is suitable for both agricultural and non-agricultural use cases, the startup is witnessing more traction from enterprise customers who want to use its tractors for various commercial purposes.

In the current fiscal, FY25, AutoNxt is aiming to clock INR 15 to INR 20 Cr in revenue by selling around 150 electric tractors.

Recently, the startup raised about $3 Mn (around INR 24 Cr) in a funding round led by Saama Capital. Google’s Amit Singhal and KKR Capstone’s Suveer Sinha also participated in the round. The startup has raised INR 30 Cr since its inception.

At The Core Of AutoNxt’s EV Tractor

According to its founders, the startup has mastered the entire value chain for building and manufacturing its electric tractors. Although AutoNxt has designed all the parts of its tractor, it does not have in-house manufacturing and leverages a network of Indian manufacturers for tractor components. AutoNxt holds the copyright for its design and has filed patent applications for its technology.

Currently, the startup sells only one electric tractor, X45H2, which comes with a 32 KW motor and produces 45 horsepower. Priced at INR 16.5 Lakh, the tractor is capable of pulling 10-12 tonnes of weight. 

It takes five to six hours to get fully charged and offers a work time of eight hours. With a three-phase power supply charger, X45H2 can be fully charged in about three hours. The tractor is also capable of conducting crop health analysis.

On the contrary, the tractor costs more than a diesel one. However, the machine is quite economical in the long run. In fact, the tractor can do three-four acres of farm work on one charge, reducing diesel costs.

What’s Next For AutoNxt?

Currently, AutoNxt is working on two additional variants of its electric tractor — one with a larger power capacity of 60-65 HP and another smaller model with 20-25 HP. These new vehicles are expected to launch within the next six months. It is also working on building an autonomous electric tractor.  

In sync with its orderbook and growing traction, AutoNxt aims to double or triple its production capacity from the current 75 tractors per month at its phase zero facility.

“We believe the way the traction for our vehicle is growing, we will need to expand to 500 tractors a month capacity in the next three to four years,” Goyal said.

The startup is also planning to build a new production facility in the Delhi NCR region. Besides, AutoNxt is also exploring opportunities in the export market with a sharp eye on some Asian, African, East European, and South American countries. 

To support these ambitious growth and expansion plans, AutoNxt is planning another fundraising round.

For now, as India charges forward with its EV goals to become a clean energy superpower, AutoNxt’s journey will be one to watch closely.

[Edited By Shishir Parasher]

The post With Hi-Tech Tractors In Shed, Can This Startup Bring The Next Big EV Revolution In India appeared first on Inc42 Media.

Riding the IPO wave in the domestic equity market this year, Ather Energy is set to become the second electric mobility startup to go public. 

Amid growing appetite for new-age tech stocks among Indian stock market investors, 10 such companies have already listed on the bourses this year, including Ather’s biggest competitor Ola Electric.

Nearly a month after the Bhavish Aggarwal-led startup made its public market debut with a primary issue of INR 5,500 Cr, Ather filed its DRHP with the SEBI for an INR 3,100 Cr public offering (primary capital). Besides a smaller IPO size compared to Ola Electric’s, there are quite a few fundamental differences between the two EV startups that led the wave of premium category consumer escooter adoption in India.

Despite having a first-mover advantage, Ather fell behind Ola Electric due to the latter’s speed in expanding market reach, creating buzz about its products, and scaling up infrastructure and sales. 

This has resulted in Ather trying to catch up with deep-pocketed Ola Electric ever since the latter’s entry into the two-wheeler EV segment.

Ather’s Muted Growth Compared To Ola Electric

Ola Electric was founded in 2017 and began the deliveries of its first EV model, the Ola S1 Pro, in December 2021.

In the year ended March 31, 2022 (FY22), Ola Electric clocked a revenue of INR 373.4 Cr. In FY23, its revenue grew over 7X to INR 2,782.7 Cr. Continuing the sharp growth, Ola Electric’s operating revenue in FY24 stood at INR 5,009.8 Cr.

In contrast, Ather began the deliveries of its first escooter model, the Ather 450, in September 2018. Following that, its flagship escooter, the Ather 450X, was launched in January 2020. 

As per publicly available data, the EV startup clocked INR 35.3 Cr in operating revenue in FY20, which grew almost 9X from INR 4.2 Cr in the previous year.

Ather’s operating revenue grew to INR 79.8 Cr in FY21 and jumped further to INR 408.9 Cr in FY22.

In FY23, Ather’s top line zoomed over 4X YoY to INR 1,780.9 Cr. However, due to a decrease in FAME-II subsidy, its operating revenue fell to INR 1,753 Cr in the last fiscal year (FY24).

It is pertinent to note that during this time, Ather also launched a few new vehicle models. Ather 450S was launched in August 2023, followed by its top-of-the-range escooter, the Ather 450 Apex, in January 2024.

As we reported earlier, Ather chose a patient approach in developing its technology and building distinguishable designs. While this helped the startup make a name for itself in the initial years of EV adoption, the game changed after 2020. With the Centre promoting adoption of EVs via the FAME scheme subsidies, several competitors raced ahead of Ather.

In fact, for several months in 2022, Ola Electric, which led the charts in terms of monthly EV sales, was followed by the likes of Okinawa Autotech, Hero Electric, and Ampere in terms of sales. However, some of these players were later found guilty of availing FAME-II subsidies in violation of the norms and saw a sharp decline in their sales. This could have been an opportunity for Ather to ramp up its sales, but it started facing strong competition from legacy automotive market leaders TVS Motors and Bajaj Auto.

While Ola Electric maintained its top position in terms of sales, with 21% market share in FY23 and 34.8% in FY24, Ather was overtaken by TVS Motors and Bajaj Auto.

The stark difference of over INR 3,000 Cr between Ola Electric and Ather’s top lines in FY24 is a direct reflection of the tepid rise in Ather’s sales over the last few years compared to Ola Electric’s.

For instance, in September 2022, Ola Electric was doing monthly sales of around 9K-10K escooters while Ather’s numbers stood at 5K-6K units around that time. A year after that, Ola Electric managed to increase its monthly sales to over 18K units in September 2023 while Ather’s numbers stood at 6K-7K units.

Cut to 2024, Ather’s vehicle registrations in August stood at around 10,902 units and Ola Electric’s at 27,547 units. 

Can Ather Catch Up With Ola Electric?

While Ola Electric’s public listing showed the investors’ appetite for EV players, it is pertinent to mention that both Ola Electric and Ather continue to be loss-making entities. While Ola Electric posted a net loss of INR 1,584.4 Cr in FY24, the loss figure for Ather stood at INR 1,059.7 Cr on a much lower revenue.

Given the public market glare, both the companies will now also feel the pressure to turn profitable, and it remains to be seen if they make any changes to their strategies to achieve this.

For now, Ola Electric is also facing intense competition and has decided to continue with its strategy of new launches and network expansion to guard its turf.

While Ather is planning to foray into the emotorcycle segment, Ola Electric has already launched its motorcycle portfolio, Roadster Series, with deliveries expected to begin in the first quarter of 2025.

However, the rising competition has impacted Ola Electric’s market share as well in recent months. In August, its market share slipped to around 31% from 39% in July. On the other hand, Ather’s market share increased to around 12% from 9% in July.

This provides an opportunity for Ather to speed up product development and increase its sales using the proceeds from the IPO to reduce the difference with Ola Electric in terms of market share. Having built its tech capabilities, the Hero MotoCorp-backed startup plans to use the funds raised from the IPO to build its upcoming manufacturing facility in Maharashtra.

In its DRHP, Ather said it plans to use INR 927.2 Cr raised from the IPO for building its electric two-wheeler factory and INR 750 Cr for scaling up its R&D.

Further, with FAME-II subsidy issues almost over and the Centre launching a new demand incentive scheme, the path seems to be clear for Ather to take aggressive bets to increase its market share. 

With EV adoption on the rise in the country, there are ample opportunities for all EV players. Only time will tell if Ather can match or get ahead of Ola Electric in terms of market share, or if the legacy players like Bajaj Auto and TVS Motor will establish their supremacy in the EV market as well.

[Edited By Vinaykumar Rai] 

The post Ather Energy Vs Ola Electric: Decoding The Numbers Behind The EV Giants appeared first on Inc42 Media.

Electric two-wheeler maker Warivo Motor India has entered the high-speed electric scooter category with the launch of CRX, which has a top speed of 55 km per hour.

In a statement on Friday (September 13), Warivo said that the price of its first high-speed escooter model CRX starts at INR 79,999 and it is available in five colours, combining safety, performance, and affordability. The vehicles come with advanced waterproof, fireproof, and blast-proof batteries, the EV maker claimed.

CRX offers two riding modes, Eco and Power, to cater to different riding styles and preferences. With four temperature sensors and a robust battery management system (BMS), the scooter is equipped to prevent overheating and detect potential issues before they arise, it added. 

Besides, ClimaCool technology would ensure CRX’s long-lasting battery performance. The scooter’s durability is certified by the UL 2271 standard, Warivo said.

“Our mission has always been to provide safe, sustainable, and affordable transportation for everyone, and the CRX perfectly encapsulates this vision. It’s designed to be a versatile ride, truly fitting for anyone and everyone,” said Rajeev Goel, director of Warivo, speaking at the launch event.

Founded in 2018, Delhi NCR-based Warivo so far sold low-speed scooters. 

As per Vahan data, the electric two-wheeler startup’s vehicle registrations stand at 24 in 2024 so far. However, this number most likely refers to Warivo’s ZB escooter, which has the highest speed of 45 km per hour. 

Warivo Motor India CEO Shammi Sharma told PTI that the startup’s sales of low-speed scooters have been averaging around 2,000 units per month.

Meanwhile, Goel told the news agency that Warivo is eyeing INR 120 Cr revenue in FY25 as compared to INR 62 Cr in FY24.

Warivo’s entry into the high-speed escooter segment comes on the heels of the Indian government announcing a new demand incentive scheme for EVs with an INR 10,900 Cr outlay. So far, the industry was eagerly waiting for the announcement of a new incentive scheme after the end of FAME-II in March this year, which became a major bottleneck for this industry’s growth.

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As part of the Centre’s push for promoting electric mobility, the union cabinet has approved the ‘PM-eBus Sewa-Payment Security Mechanism (PSM) scheme’ with an outlay of INR 3,435.33 Cr for procurement and operation of ebuses by public transport authorities (PTAs).

The scheme aims to support the deployment of over 38,000 ebuses during FY25-FY29 period. 

In a statement, the government said that the scheme will support the operation of ebuses for a period of up to 12 years from the date of deployment.

The statement said that a majority of the buses operated by PTAs currently run on diesel/CNG. While ebuses are environmentally friendly and have lower operational costs, the high upfront cost and lower realisation of revenue from operations could make it challenging for PTAs to procure and operate ebuses.

“To address the high capital cost of ebuses, public transport authorities (PTAs) induct these buses through public private partnership on Gross Cost Contract (GCC) model. The PTAs are not required to pay the upfront cost of the bus under the GCC model, instead OEMs/operators procure and operate ebuses for PTAs with monthly payments. However, OEMs/operators are hesitant to engage in this model due to concerns about potential payment defaults,” the statement added. 

The new scheme aims to address this concern by ensuring timely payments to OEMs/operators through a dedicated fund. 

In case of any default in payments by the PTAs, the implementing agency, Convergence Energy Services Limited (CESL), would make the necessary payments from the funds under the new scheme, which could be later recouped by the PTAs and states and union territories.

Besides the PSM scheme, the Cabinet also approved the much-awaited FAME-III scheme, albeit with a different name — PM Electric Drive Revolution in Innovative Vehicle Enhancement (PM E-DRIVE) Scheme. 

The new scheme to boost EV adoption has a total outlay of INR 10,900 Cr. Over the next two years, the scheme aims to support 24.79 Lakh electric two-wheelers, 3.16 Lakh electric three-wheelers, and 14,028 ebuses via demand incentives. 

Besides, the scheme has also set aside various amounts for the installation of public charging stations, deployment of etrucks and eambulances, among others.

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After months of speculations over the Centre’s plans for the launch of the third iteration of the Faster Adoption and Manufacturing of Electric Vehicles (FAME) scheme, the union cabinet has approved ‘PM Electric Drive Revolution in Innovative Vehicle Enhancement (PM E-DRIVE) Scheme’ for the promotion of electric vehicles in the country. 

PM E-DRIVE, which will effectively replace the FAME scheme, will have an outlay of INR 10,900 Cr for a period of two years. It is pertinent to note that this is higher than the INR 10,000 Cr initial outlay of the FAME- II scheme.  

The new scheme will provide subsidies and demand incentives worth INR 3,679 Cr for electric two-wheelers (E2Ws), three-wheelers (E3Ws), ambulances, trucks and other emerging EVs. With this, the government aims to support 24.79 Lakh E2Ws, 3.16 Lakh E3Ws, and 14,028 ebuses.

Under the scheme, the Ministry of Heavy Industries (MHI) will launch e-vouchers for EV buyers to avail demand incentives. “At the time of purchase of the EV, the scheme portal will generate an Aadhaar authenticated e-Voucher for the buyer. A link to download the e- voucher shall be sent to the registered mobile number of the buyer,” a government statement said.

Further, the government has earmarked INR 4,391 Cr for the purchase of 14,028 ebuses for public transport agencies. These buses will be deployed in nine cities – Delhi, Mumbai, Kolkata, Chennai, Ahmedabad, Surat, Bengaluru, Pune and Hyderabad. Convergence Energy Services Limited (CESL) will be responsible for the demand aggregation.  

PM E-DRIVE will also boost India’s charging infrastructure by promoting installation of electric vehicle public charging stations (EVPCS). The government is targeting installation of 22,100 fast chargers for E4Ws, 1,800 fast chargers for ebuses and 48,400 fast chargers for E2Ws and E3Ws under the scheme. The budget allocation for the charging infrastructure is INR 2,000 Cr. 

“The primary objective of the PM E-DRIVE scheme is to expedite the adoption of EVs by providing upfront incentives for their purchase, as well as by facilitating the establishment of essential charging infrastructure for EVs,” the Centre said. 

Besides, the scheme also has an outlay of INR 780 Cr for the upgradation of test agencies of MHI with new and emerging technologies. The upgradation of the testing capabilities might be a direct response to the gaps observed in vehicles under the FAME-II. Companies like Hero Electric, Okinawa Autotech, Ampere EV were also fined for violations of the norms of the scheme. 

The announcement comes a few days after it was reported that the government is considering expanding the outlay for the third rendition of the FAME scheme to INR 11,000 Cr. 

FAME-II was approved in 2019 with an outlay of INR 10,000 Cr for a period of three years. However, the deadline was extended by the government from March 31, 2022 to March 31, 2024. Following this, the Centre launched the Electric Mobility Promotion Scheme (EMPS) with an allocation of INR 500 Cr as a stop-gap measure to promote EV adoption.

Besides the launch of PM E-DRIVE, the union cabinet alson approved the ‘PM-eBus Sewa-Payment Security Mechanism (PSM) scheme’ with an outlay of INR 3,435.33 Cr for procurement and operation of ebuses by public transport authorities (PTAs).

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The competition in the Indian electric two-wheeler landscape is heating up. Now, Honda Motorcycle & Scooter India (HMSI) is reportedly planning to launch its first electric vehicle (EV) by March 2025. 

HMSI CEO Tsutsumu Otani told NDTV that the company plans to launch “Activa Electric” by the end of this fiscal year.

As per the report, the new EV will likely be an all-new product and as such Honda could use a different “name plate” for this vehicle. 

The report added that the company plans to leverage its battery swapping technology, Honda e:Swap, to power the escooter. Additionally, the EV could also be equipped with features such as a touchscreen infotainment unit, connected features, keyless operation, among others.

Confirming the development, HMSI’s director of sales and marketing, Yogesh Mathur, told  PTI that the company plans to foray into the EV segment in the current fiscal itself, adding that it is eyeing one-third of its overall sales from the EV segment by 2030. 

“And what we understand is that by 2030 there will be a major shift towards EVs and we have announced that by 2030 in our lineup also..one-third at least will be coming only from EV models,” Mathur reportedly added. 

As per the PTI report, the new EV model is being developed jointly by HMSI in partnership with Honda teams. He also reiterated that the contribution of electric vehicles to the overall two-wheeler sales was continuing to grow. 

The comments come as EV vehicles continue to see rapid adoption across the country. Buoyed by government subsidies and sops, the ecosystem has seen the emergence of multiple new-age tech companies such as listed Ola Electric and IPO-bound Ather Energy and Pure EV. 

Sensing an opportunity, even legacy players such as TVS, Hero Motocorp and others also have unveiled their electric offerings to woo customers. With this, HSIL has become the latest to jump into the EV fray and capitalise on the growing demand for such vehicles. 

On September 10, union transport minister Nitin Gadkari said that India will clock 1 Cr annual EV sales by 2030, adding that the EV boom will create 5 Cr jobs in the country by the end of this decade.

He added that the homegrown EV market will become an INR 20 Lakh Cr opportunity by 2030 while the EV financing market will soar to a size of INR 4 Lakh Cr by the same year. 

This comes as the Centre is all set to roll out the third iteration of the Faster Adoption & Manufacturing of Electric Vehicles (FAME) scheme in the coming two months. 

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Transport minister Nitin Gadkari has said that annual electric vehicle (EV) sales in India will touch the 1 Cr mark by 2030. 

Gadkari also said that the boom in EV sales will create 5 Cr jobs in the country by the end of this decade, PTI reported. He added that the homegrown EV market will become an INR 20 Lakh Cr opportunity by 2030. 

Addressing the annual convention of Society of Indian Automobile Manufacturers (SIAM) on Tuesday (September 10), the minister also estimated that the Indian EV finance market will balloon to a size of INR 4 Lakh Cr in the next six years. 

Expressing hope that India will become the biggest global automotive manufacturing hub in the future, Gadkari said he expects the cost of lithium-ion batteries to come down further, enabling affordability and fueling mass adoption of EVs. 

Asserting confidence that Centre’s production linked incentive (PLI) scheme will spur battery cell manufacturing in India, Gadkari said, “India will be in a position to export our lithium-ion battery to different parts of the world going forward, as many companies are setting up their cell manufacturing facilities in the country”.

Meanwhile, in a written address at the event, Prime Minister Narendra Modi called on the Indian automotive industry to build green and clean mobility solutions. 

“Working (on) greener and cleaner mobility is a vital step in this direction (country’s progress). It is important that this climate-conscious and sustainable vision resonates with domestic and international partners,” PM Modi said as per PTI. 

The comments came days after Gadkari said that there was no need for EV subsidies. He later clarified that he had no objection towards subsidies for EVs from the finance and heavy industries ministers.

It must be highlighted that EV sales have largely been on an upswing so far in 2024. After tanking by half month-on-month (MoM) in April, two-wheeler electric vehicle registrations grew 18% MoM in May and 3.3% MoM in June. The numbers further rose 34% MoM in July before falling 18% MoM in August. 

Despite headwinds such as high prices, insufficient charging infrastructure and range anxiety among customers, sales of EVs have been on the rise owing to the sops being offered by the Centre and state governments. 

Meanwhile, the Centre is planning to roll out the third version of the Faster Adoption & Manufacturing of Electric Vehicles (FAME) scheme in the coming two months. 

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Electric two-wheeler maker Ather Energy has filed its draft red herring prospectus with the Securities and Exchange Board of India (SEBI) for its initial public offering worth over INR 3,100 Cr. 

The IPO comprises a fresh issue of equity shares worth INR 3,100 Cr and an offer-for-sale (OFS) component of up to 2.2 Cr equity shares. 

Caladium Investments, National Investment and Infrastructure Fund II, Internet Fund III, 3State Ventures and cofounders Tarun Mehta and Swapnil Jain are among the investors who will offload their shares via OFS.

Additionally, Ather aims to raise INR 620 Cr through a pre-IPO placement and if such placement is undertaken, the amount will be deducted from the total fresh issue size. 

Proceeds worth INR 927.2 Cr from the IPO will go towards phase I of its manufacturing facility in Chhatrapati Sambhajinagar. 

Besides, a portion of funds raised through IPO will also be allocated towards research and development (R&D), marketing initiatives, infrastructure, production initiatives and other general corporate purposes.

Founded in 2013 by Tarun Mehta and Swapnil Jain, Ather Energy manufactures EV two-wheelers and battery packs and also has its charging infrastructure. It competes against the likes of Ola Electric, TVS Motor, and Bajaj Auto, Tata Passenger Electric Mobility, Mahindra Electric Automobile, among others

The development comes a month after Ather’s counterpart Ola Electric went public and raised over INR 6,145.6 Cr in IPO at a valuation of $4 Bn. Despite this high valuation, Ola Electric made a muted market debut in bourses last month. 

At the heart of this is a growing number of Indian startups either gearing up for or making their market debut in recent times. 

Last month, three new-age startups including FirstCry, Ola Electric and Unicommerce made their debut on the stock market. Besides, startups like Smartworks and Ecomm Express also filed their DRHP with the SEBI. 

In just the first eight months of 2024, a total of 10 new-age tech companies like Go Digit General Insurance, FirstCry, Unicommerce, TBO Tek, Ola Electric, Awfis, ixigo, Menhood, TAC Security and Trust Fintech have made their debut on the exchanges.

Ather Energy’s 547-page DRHP with SEBI outlines its shareholding pattern and people at the helm. Here is a look at the company’s Cap Table 

Who Sits At Ather Energy’s Cap Table?

Hero MotoCorp is the largest shareholder  in Ather Energy with 115.08 Cr shares, owning a 37% stake in the company on a fully diluted basis. 

Caladium Investment Pte Ltd is the second-most largest shareholder with 4.6 Cr shares, representing 15.04% ownership in the company on a fully diluted basis.

National Investment and Infrastructure Fund II and Internet Fund III hold 6.6% and 6.3% stakes in Ather, respectively, while both its promoters, Tarun Sanjay Mehta and Swapnil Babanlal Jain occupy a 6.6% stake each. 

Who’s Who At Ather Energy?

Tarun Sanjay Mehta

Tarun Sanjay Mehta, one of the promoters, is an executive director and the chief executive officer of the company. He has been associated with Ather since its incorporation and leads operations in product, business, and growth. He has over 10 years of experience in the EV sector.

Swapnil Babanlal Jain

Swapnil Babanlal Jain, one of the promoters of the company, is an executive director and the chief technical officer of the company. He has been associated with Ather since its incorporation and works on both the long-term technology roadmap for the company, as well as on the day-to-day aspects of creating an engineering team and culture.

Niranjan Kumar Gupta 

Niranjan Kumar Gupta is a non-executive director of the company and a nominee of HMCL on the board. He has been associated with the company since November 3, 2020. He is a qualified chartered accountant, company secretary, and cost and works accountant. He was previously associated with Vedanta Group as the chief financial officer for the aluminium and power vertical and is currently the chief executive officer of HMCL. He has over 10 years of experience in finance, mergers and acquisitions, and supply chain.

Nilesh Shrivastava

Nilesh Shrivastava is a nominee director of the company and a nominee of National Investment and Infrastructure Fund II on the board. He has been associated with the company since July 22, 2022. He was previously associated with the International Finance Corporation as a manager. He is currently designated as a partner at the Strategic Opportunities Fund at National Investment and Infrastructure Fund II. He has over 25 years of experience in private equity, portfolio management, and banking.

Pankaj Sood 

Pankaj Sood is a nominee director of the company and a nominee of Caladium Investment Pte Ltd on the board. He has been associated with the company since November 11, 2022. He was previously associated with Kotak Mahindra Capital Company Limited, Ernst & Young, and SBI Capital Markets. He is currently employed by GIC in the global leadership group. He has over 25 years of experience in finance, advisory, and capital markets.

Ram Kuppuswamy

Ram Kuppuswamy is a non-executive director of the company and a nominee of HMCL on the board. He has been associated with the company since January 27, 2023. Previously, he was with Bharti Airtel Limited and VMWare Singapore Pte. Ltd.

Kaushik Dutta

Kaushik Dutta is an independent director of the company. He is a fellow member of the Institute of Chartered Accountants of India and a co-founder of Thought Arbitrage Research Institute, an independent not-for-profit research think tank working in the areas of corporate governance and sustainability. He was also associated with Price Waterhouse & Co Chartered Accountants LLP, and Lovelock & Lewes, Chartered Accountants, as a partner for over 16 years.

Neelam Dhawan

Neelam Dhawan is the chairperson and an independent director in the company. She was previously associated with Hewlett-Packard Enterprise India Private Limited as vice president of solutions sales and with HP India Sales Private Limited, Hewlett-Packard India Private Limited, and Microsoft Corporation (India) Private Limited as managing director. Currently, she serves as an independent director on the boards of ICICI Bank Limited, Yatra Online Limited, Yatra Online Inc., Capita PLC, and Tech Mahindra Limited. She has several years of experience in information technology.

Sanjay Nayak

Sanjay Nayak is an independent director of the company. He has been associated with the company since August 27, 2024. He was previously associated with Tejas Networks Limited as its managing director and chief executive officer. He has several years of industry experience and expertise in electronics and telecommunications.

Leaders At The Helm Of Management:

Sohil Dilipkumar Parekh

Sohil Dilipkumar Parekh is the chief financial officer of the company, overseeing financial strategy, reporting, operations, fundraising, and tax matters. Prior to joining the company on September 9, 2022, Sohil was associated with Claris Limited and has past work experience across various other sectors, including waste-to-energy, pharmaceuticals, market research, business process outsourcing, IT, and ITES.

Puja Aggarwal

Puja Aggarwal is the company secretary and compliance officer of the company and is responsible for ensuring managerial, secretarial and regulatory compliance. She has been associated with the company since April 17, 2023.

Harendra Saksena

Harendra Saksena is the company’s chief procurement officer and is responsible for maintaining relationships with suppliers, managing overall operations, and supervising the company’s procurement requirements. He has been associated with the company since July 4, 2022.

Sanjeev Kumar Singh 

Sanjeev Kumar Singh is the chief operating officer of the company and is responsible for manufacturing operations across the company’s factories, program management, and planning. He has been associated with the company since July 11, 2022. Prior to joining the company, he was associated with GENPACT India, Bosch Limited, ACME Tele Power Limited, and Tata Motors Limited.

Ravneet Singh Phokela

Ravneet Singh Phokela is the chief business officer of the company and is responsible for marketing, sales, after-sales and service, charging infrastructure, insights and analytics, and customer service verticals. He has been associated with the company since September 1, 2015.

The post Ather Energy DRHP: Decoding The Shareholding Pattern & People At The Top appeared first on Inc42 Media.

Following Ola Electric’s suit, IPO-bound electric two-wheeler (E2W) manufacturer Ather Energy is working on new platforms to foray into the electric motorcycle segment.

In its draft red herring prospectus (DRHP) filed with SEBI, Ather said it plans to expand its product portfolio with the launch of new vehicles that can cater to the broader E2W market with upgraded software features. 

“We are in the process of developing two new E2W platforms that are expected to further improve cost structures and enable us to launch products across a range of scooter and motorcycle segments,” the startup’s DRHP read. 

As of now, Ather’s portfolio comprises seven electric scooters – Ather 450X (2.9 kWh), Ather 450X (3.7 kWh), Ather 450S, Ather 450 Apex, Ather Rizta S, Ather Rizta Z (2.9 kWh) and Ather Rizta Z (3.7 kWh). 

The variants of Ather 450X brought in the highest revenue for Ather in the financial year 2023-24 (FY24). Ather 450X contributed INR 590.5 Cr to the revenue. Revenue from Ather 450X with 2.9 kWh capacity stood at INR 157.8 Cr, while that of Ather 450X with 3.7 kWh capacity stood at INR 535.5 Cr.

For the fiscal, the EV maker saw its revenue decline 1.5% year-on-year (YoY) to INR 1,753.8 Cr. Net loss zoomed over 22% YoY to INR 1,059.7 Cr in FY24. 

The startup filed its IPO papers earlier in the day and is looking to raise INR 3,100 Cr via a fresh issue of shares. The public issue will also comprise an offer-for-sale (OFS) of up to 2.2 Cr equity shares.

Ather will use the IPO proceeds to finance its new factory in Maharashtra. As of now, it operates only one plant in the Hosur district of Tamil Nadu.

Besides, the funds will also be used for investment in research and development, marketing initiatives and general corporate purposes. 

Last month, Ather’s rival Ola Electric unveiled its electric motorcycle portfolio. Its Roadster portfolio comprises Roadster X, Roadster, and Roadster Pro bikes. The deliveries of the motorcycles will commence from Q4 FY25.

With the entry of Ola Electric and the proposed entry of Ather Energy, the competition in India’s electric bike segment will intensify further. As of now, the segment is populated by the likes of Revolt, Pure EV, among others. 

According to a report by Mordor Intelligence, the Indian ebike market is projected to grow to a size of $60.9 Mn by 2029, clocking a CAGR of 17.7% from $27 Mn in 2024.

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IPO-bound electric two-wheeler player Ather Energy’s operating revenue declined 1.5% year-on-year (YoY) to INR 1,753.8 Cr in the financial year 2023-24 (FY24), while net loss widened over 22% to INR 1,059.7 Cr.

As per the company’s DRHP filed with SEBI for more than INR 3,100 Cr IPO, Ather’s top line was hurt by the reduction in FAME subsidy provided by the government.

In FY23, Ather’s operating revenue had seen a sharp 335% YoY jump to INR 1,780.9 Cr. In line with the EV startup’s growth, its net loss also widened 2.5X YoY to INR 864.5 Cr.

On the reduction in revenue, Ather said in the DRHP, “Government of India has in the past recalled and scaled back, and may in the future recall or scale back, the benefits available to EV manufacturers under its schemes, increasing the costs borne by EV manufacturers. For example, pursuant to a notification dated May 19, 2023 from the Ministry of Heavy Industries, Government of India, the cap on incentives for the FAME scheme was scaled back from INR 15,000 per kWh to INR 10,000 per kWh, with effect from June 1, 2023. As a result of the reduced subsidy, our customers faced an increase in the retail price of our E2Ws ranging from INR 20,434 to INR 30,285. This contributed to a slight decrease in our revenue from operations.” 

Founded in 2013 by Tarun Mehta and Swapnil Jain, Ather is one of the leading Indian two-wheeler EV manufacturers. It also manufactures its own battery packs and operates its own charging network. After building its market on its 450 series of escooters, which comprises Ather 450S, Ather 450X, and Ather 450 Apex, the startup recently launched a family escooter series Rizta and also forayed into the smart helmet category.

Ather’s first model, Ather 450X – with its three variants – was the biggest contributor to the revenue in FY24. The total revenue generated by this series of vehicles stood at INR 1,283.8 Cr. In that, Ather 450X with 2.9 kWh capacity contributed 9% to the total operating revenue and Ather 450X with 3.7 kWh capacity contributed 31%.

Meanwhile, the startup generated INR 277.7 Cr in revenue from Ather 450S and INR 9.1 Cr from Ather 450 Apex.

In FY24, Ather sold 22,712 units of its Ather 450S, 86,315 units of 450X and 550 units of Ather 450 Apex. Ather Rizta’s deliveries began in the current fiscal year, from May 2024. 

While Ather’s sale of finished goods, comprising its escooters, increased in FY24, the sale of its stock-in-trade, comprising EV-related accessories, spare parts and merchandise plummeted almost 76% YoY.

The EV major’s sale of services, which it primarily derives from the sales of Pro Pack, which consists of Atherstack features, three years of access to Ather Connect features and the extended battery warranty, saw almost a 15% YoY decline during the year under review.

Zooming Into Expenses

Ather’s total expenses in FY24 stood at INR 2,674.2 Cr, rising marginally from INR 2,666.3 Cr in the previous year.

Cost Of Materials Consumed: The EV OEM spent the largest portion of its total expenses under this head, which increased 2.7% YoY to INR 1,579.2 Cr in FY24.

It comprised raw materials and components Ather buys from its vendors for use in the manufacturing of scooters. Besides, it outsources manufacturing of components like chassis, battery management system (BMS), vehicle control unit, motor controller, and raw materials.

Employee Cost: Ather’s total employee benefit expenses rose 10.3% to INR 369.2 Cr in FY24 from INR 334.8 Cr in the previous year.

The company had 1,458 on-roll employees and 996 off-roll employees as on March 31, 2024.

Advertisement & Marketing: Ather’s expenses under this bucket declined a massive 55% to INR 90.7 Cr during the year under review from INR 203.8 Cr in FY23.

The startup said that this reduction in marketing efforts was mainly done to optimise marketing spends, foreseeing a slowdown in consumer demand given the reduction of regulatory incentives under FAME-II.

R&D Expenses: Ather’s expenditure here increased to INR 236.5 Cr in FY24 from INR 191.6 Cr in the previous fiscal year.

Quick View Of The Proposed IPO

As per Ather’s DRHP submitted on Monday (September 9), its IPO will comprise INR 3,100 Cr worth of fresh issue and an OFS component of 2.2 Cr equity shares.

Cofounders Mehta and Jain will be offloading 10 Lakh shares each as part of the OFS. Among the other selling shareholders are Caladium Investments, National Investment and Infrastructure Fund II, and Tiger Global’s Internet Fund III. Hero MotoCorp, the biggest shareholder in Ather, will not sell any stake in the IPO.

Ather’s IPO comes on the heels of its competitor Ola Electric going public by raising over INR 6,145.6 Cr in total. 

Like Ola, Ather is also going public as a loss-making entity with no clear path projected to profitability. 

In fact, the recently turned unicorn said in its DRHP that its ability to achieve profitability, positive cash flows from operating activities and a net working capital surplus will depend on factors like cost control, increasing sales of escooters in India, Nepal, and Sri Lanka and any other international markets.

Recently, Ather expanded its business to Sri Lanka, marking its second overseas foray after Nepal.

“We cannot assure you that our expansion into international markets will be profitable, nor can we guarantee that our products can be sold at favourable margins,” the EV major said.

The post Ather Energy FY24: Revenue Declines On Reduction In FAME-II Subsidy, Loss Up 22% To INR 1,060 Cr appeared first on Inc42 Media.

In the last one year, the EV sector in India has faced significant challenges on the subsidy front. The reduction in subsidies has hurt many electric two-wheeler companies and slowed down the overall EV adoption in the country.

While it’s debatable if it was the government’s ambiguity while issuing subsidies or the EV makers’ failure to comply with the localisation norms, the country needs to come out of this turmoil at the earliest to lead the global EV revolution.

Nevertheless, this upheaval might be leading to a new phase in vehicle electrification for the country. For starters, talks around the importance of EV financing have started getting increased focus, and new startups are entering this space to ensure a seamless adoption of EVs, especially for commercial use cases. 

Meanwhile, the sector is also making noteworthy improvements in battery technology, faster charging, and solutions for B2B needs like last-mile delivery have been driving adoption — all thanks to the electrification happening at a mass scale.

As of now, with FAME-III yet to be announced and industry leaders already standing divided on the need for subsidies, it is vital to note that demand subsidies have played a crucial role in giving a boost to the country’s EV adoption journey.

To get better clarity into the current state of the Indian EV space on World EV Day, we spoke with Kunal Khattar, founding partner, AdvantEdge, a mobility-focussed early-stage VC firm. It has also backed EV startups, including Exponent Energy, Baaz Bikes, Park+, and Electrifi Mobility.

Not to mention, Khattar helped us decode the current challenges, complexities, and opportunities for the Indian EV industry. Notably, the industry leader believes that 100% EV adoption is inevitable because of the rising costs of internal combustion engine (ICE) vehicles and the deflationary nature of EVs. 

However, while the 100% EV adoption dream currently feels far-fetched, where do we stand on the global pulpit? What kind of gaps need to be plugged in at the earliest? And most importantly, will subsidising users really help the Indian EV ecosystem in the long run? If not, then what will?  

Here are the edited excerpts…

Inc42: As one of the top investors in the EV industry, how do you see the sector right now? Has some of the initial excitement died down? How are you assessing the current progress within the EV ecosystem?

Kunal Khattar: People have largely focussed on personal mobility, like Ather and Ola Electric, Tata Motors, MG, or BYDs. I think personal mobility (personal vehicles), or electrification of personal form factors, has always received more media attention because the readers are often potential customers. Now, with the FAME subsidy reducing dramatically, the numbers are fluctuating, and we are witnessing inconsistent growth.

As a fund, we have always believed that as EV adoption happens at a mass scale, the transition from ICE to EV will happen faster in B2B or commercial areas than personal mobility. 

Our thesis is simple — let’s electrify the 10% commercial B2B vehicles, as it will save the largest portion of the $140-$150 Bn a year spent on importing crude oil.

To share an interesting data point, in India, we have about 380 Mn-400 Mn vehicles on the road. Of these, only 10% are commercial B2B form factors. However, they consume 70% of the country’s total energy. This category includes public transportation, vehicles used in logistics, last-mile deliveries, food delivery, quick commerce, trucks, and intercity buses, among others. 

Unlike personal EVs where the payback period in comparison to the cost paid upfront is higher, EVs are 30%-40% cheaper for B2B commercial use cases from day one.

However, when I speak to the likes of Uber, Ola, Amazon or Flipkart, they say that they want to be 100% electric. But the issue is that there is no solid energy solution. The vehicles available are either low-speed food deliveries or too high-end. And then there is the challenge of high financing and insurance costs.

So, we are currently hearing about all of these missing pieces that are preventing an accelerated adoption of EVs for commercial B2B use. That’s the area we are broadly focussing on.

The good part is that the change in this direction is happening but this is not an aspect the mass is interested in.

Inc42: When you talk about these form factors that are missing, how do you think the existing players in the market – be it in battery or vehicle manufacturing — can play a role?

Kunal Khattar: Let’s break it down into three to four categories. If I start with three-wheelers, it’s largely a 100% B2B use case. Since it’s already 100% B2B, if you electrify it, it meets the needs of the end users. That’s why we’ve seen companies like Euler, Altigreen and Omega Seiki Mobility come up fast.

Now, the legacy guys are catching up. The Murugappa group is coming, Mahindra and Bajaj are entering this category. Hero MotoCorp is trying to enter the space by investing in Altigreen.

In the two-wheeler category, a majority of the funding and capital has gone towards consumer-focussed players like Ather and Ola Electric, and TVS. Very little capital has gone to companies that are solving for commercial use cases. Hence, a majority of the vehicles in the B2B space are typically Completely Knocked Down (CKD) kits coming from China and being assembled here in India. 

In fact, many players solving for logistics did this as they wanted the cheapest options available but these vehicles fail to function well as per Indian conditions, including roads, infrastructure, and temperature, etc.

That’s where the likes of Yulu and Baaz have become the leaders in building local two-wheelers for last-mile delivery and logistics. However, these vehicles in commercial use cases require swapping or rapid charging solutions.

Now, the battery-swapping technology that Sun Mobility or Baaz are providing is solving this problem to an extent.

Meanwhile, Exponent Energy’s 15-minute charging is a game changer for three-wheeler cargos. 

Coming to ebuses, the rapid adoption of EVs has mostly been at airports. For bus companies, like ZingBus or FreshBus, that need to ply their vehicles 600-800 km a day for intercity travel, it isn’t feasible if the buses take six hours to charge after every 300 km. This is where Exponent has now come up with 15-minute charging for ebuses.

In the electric car category, while players like BluSmart and Everest have emerged, the problem is they use EVs made by traditional OEMs like Tata Motors, which are made for consumer use cases, or are retrofitting traditional ICE vehicles to electric. So, we need players who would build EVs only for BluSmart or Everest.

The biggest gap right now is in heavy-duty commercial EVs for long distances. There is a need for strong energy distribution facilities on national highways, which will first be set up to cater to the needs of buses. Once they are set up, you’ll start seeing etrucks joining the fray.

Inc42: Does charging infra continue to be a major challenge? How do you think India is doing in terms of charging infrastructure and government policies? 

Kunal Khattar: In many Western countries, 70-80% of EV charging is done at home or at work. The challenge with India is that our cities were not planned keeping EVs in mind, and garages at Indian homes are not a common sight.  

Therefore, our dependence on public charging increases. Also, we don’t see a lot of charging options at work because real estate is too expensive.

A way to crack this is to increase battery swapping infra, which takes less space. This is also the reason why is why swapping is becoming increasingly popular among smaller form factors like two-wheelers and three-wheelers.

The real breakthrough will happen when an Indian Oil petrol pump has 10 electric charging points, along with diesel, petrol and CNG filling pumps.

But I see this happening 20 years from now.

As far as the Indian government’s stand on EVs is concerned, it has been very supportive in trying to accelerate the adoption. However, in FAME-I and FAME-II, we’ve roughly seen INR 10,000-12,000 Cr of subsidy given by the government to the overall EV sector, which is around $1.5 Bn.

For comparison, China has invested $230 Bn in its EV sector to date. I understand that we have a limited budget, but we also aspire to become world leaders in EVs.

Also, we would like to see more subsidies for manufacturing, which is why PLI is the true game changer over FAME which subsidises end consumers.

We would like to see the taxpayers’ money going into prioritising the infrastructure before end customers. If you build a robust charging network, infrastructure, build your own battery and cell technology, and set up a manufacturing plant that can manufacture at scale, the cost of EVs will automatically fall.

Therefore, I feel that the country needs to prioritise better, and we need a lot more support.

Inc42: Do you believe subsidies to end consumers via FAME are not needed anymore, especially since transport minister Nitin Gadkari recently said EV makers no longer need subsidies?

Kunal Khattar: While subsidies at the product level are fine, I believe we need capital inflow to make the manufacturing of EVs more competitive rather than continuously subsidising end users.

This means I would like to see the charging infrastructure becoming more competitive, so the government should focus on that and bring down the cost of the hardware required for charging.

It should encourage people to set up cell manufacturing plants through PLI, attract more global OEMs, encourage joint ventures, and support large-scale manufacturing funds for critical components like motors and controllers. Subsidies for land and energy will also help.

I think investing in infrastructure or B2B players will have more benefits in the long run.

Inc42: Are you planning to invest in any EV component makers or ESDM players building solutions, particularly for electric mobility?

Kunal Khattar: EVs require 70%-80% fewer parts than any internal combustion engine. Its four major components are the battery, battery management system (BMS), motor, and controller. The rest of the vehicle, comprising wheels, shock absorbers, and doors,  is similar to ICE vehicles. So, the traditional suppliers will continue to be relevant even for EVs. 

Hence, we are interested in component manufacturing, but the number of products that we need to build is very few. Unless somebody has a proprietary technology that’s mind-blowing, we will not invest. For instance, Exponent has impressed us with its innovative tech.

We met almost all startups out there building different components. We are keeping an eye on them for possible investment opportunities. 

Further, semiconductors for electric mobility hasn’t been our main focus area. However, we are more interested in exploring how AI is going to impact electrification. 

I think chips, autonomous driving, cell technology, battery warranty, alternate cell chemistries, expanding usage-based insurance, and usage-based finance have the potential to support the AI play in EVs. 

We keep talking about AI as our smartphones on wheels.  So, if AI in smartphones can make smartphones 10x more efficient, we are trying to understand how the technology will make an EV more efficient.

In addition to this, we are looking at autonomous vehicles, not necessarily EVs. Also, autonomous tractors make for a very interesting use case. We’re actually in the process of investing in an e-tractor company. Autonomous tractors are also on our radar, but maybe two to three years from now.

The post Current EV Subsidies Aren’t Enough, India’s EV Future Hinges On Infra: AdvantEdge’s Khattar appeared first on Inc42 Media.

Union minister for road transport and highways Nitin Gadkari has said that he doesn’t have any objection to subsidies for electric vehicles (EVs) from the finance and heavy industries ministers.

Addressing the 64th ACMA annual session, the minister highlighted how the costs of EVs are expected to align with those of petrol and diesel vehicles in two years, making additional financial incentives redundant. 

This comes a few days after Gadkari suggested that subsidies to EV makers are no longer needed. He cited reduced prices of lithium ion batteries and the increase in the number of EV manufacturing as the reasons for the same.

“Initially costs of manufacturing electric vehicles were high, but as demand has increased, production costs have dropped, making further subsidies unnecessary,” the minister said.

“Consumers are now choosing electric and compressed natural gas (CNG) vehicles on their own and I do not think we need to provide much subsidy for electric vehicles,” he said, pointing out the lower rate of GST on electric vehicles (5%) compared to petrol and diesel vehicles (28%).

Even with the government aiming for EV penetration to reach 30% by 2030, EV adoption for both two- and four-wheelers has rather remained sluggish. 

On the broader EV adoption front, the cumulative EV sales in India reached 41,35,077 units by the end of FY2024, as per a report by JMK Research and Analysis. 

In FY24, the EV sales surpassed the 1.7 Mn mark with over 55% of the share coming from registered e2Ws, followed by passenger electric three-wheelers (E3W P) with 32% market share.

Total EV two-wheeler registrations also fell to 88,473 units last month from over 1.07 Lakh units registered in July, as per Vahan data as of September 2. However, the registrations rose 41% compared to 62,782 units in August 2023.

Amid all these, the government has been introducing several initiatives to boost EV sales. Earlier this year, the Ministry of Heavy Industries introduced the INR 500 Cr EMPS 2024. It is a stopgap scheme aimed at helping the EV industry with demand subsidies following the end of the FAME-II scheme and before the launch of the FAME-III scheme.

Moreover, startups in the EV segment are either planning to or have entered the brouses recently. While Ola Electric made its EV debut in August this year, its counterpart Ather Energy is also reported to be gearing up for its IPO.

The post India’s EV Push May No Longer Need Subsidies: Nitin Gadkari appeared first on Inc42 Media.

Electric two-wheeler maker Ather Energy has filed its draft red herring prospectus (DRHP) with capital markets regulator SEBI to raise more than INR 3,100 Cr through its initial public offering (IPO).

The proposed IPO is a combination of fresh issue of equity shares worth INR 3,100 Cr and an offer-for-sale (OFS) of up to 2.2 Cr equity shares with a face value of INR 1 each.

Ather Energy also plans to raise INR 620 Cr through a pre-IPO placement. If such placement is undertaken, the amount will be deducted from the total fresh issue size.

It was reported earlier that the emobility unicorn is eyeing a valuation of around $2.5 Bn for its IPO.

Caladium Investments, National Investment and Infrastructure Fund II, Internet Fund III, 3State Ventures and cofounders Tarun Mehta and Swapnil Jain are among investors who will offload their shares via OFS.

Meanwhile, automobile giant Hero MotoCorp, the biggest shareholder in Ather Energy with a 37.2% stake, will not sell shares in the IPO.

Proceeds to the tune of INR 927.2 Cr from the IPO will be used for phase I of the manufacturing facility that Ather Energy plans to set up in Chhatrapati Sambhajinagar, Maharashtra, to manufacture and assemble electric two-wheelers and batteries, as per the DRHP.

The company plans to commence production in a phased manner at the facility by May 2026 with a targeted capacity of 0.5 Mn E2Ws.

A portion of the funds raised through the IPO will also be allocated towards research and development (R&D), marketing initiatives, infrastructure, production initiative and other general corporate purposes.

It is pertinent to note that Ather joined the unicorn club recently after raising INR 600 Cr ($71 Mn) from its existing investor National Investment and Infrastructure Fund (NIIF) at a post-money valuation of  $1.3 Bn.

Founded in 2013 by Tarun Mehta and Swapnil Jain, Ather Energy manufactures EV two-wheelers and battery packs and also has its own charging infrastructure. After building its market on its 450 series of escooters, the startup recently launched a family escooter series Rizta and forayed into the smart helmet category.

In terms of escooter sales, Ather is the fourth biggest player in the Indian market, behind Ola Electric, TVS Motor, and Bajaj Auto. Ather’s total vehicle registration in August stood at 10,873 units, up almost 52% year-on-year (YoY).

As per its DRHP, Ather Energy widened its consolidated net loss by over 22% to INR 1,059.7 Cr in the financial year 2023-24 (FY24) from INR 864.5 Cr in the preceding fiscal year.

Revenue from operations also fell 1.5% year-on-year to INR 1753.8 Cr.

Ather’s DRHP comes at a time when its competitor Ola Electric has already gone public by raising over INR 6,145.6 Cr through its IPO. The Bhavish Aggarwal-led startup went public at a valuation of $4 Bn.

However, the company made a muted stock market debut, with its shares listing at INR 75.99 apiece on the BSE as against its IPO issue price of INR 76.

The post Ather Energy Files IPO Papers With SEBI, Eyes INR 3,100 Cr Via Fresh Issue appeared first on Inc42 Media.

Electric two-wheeler maker Ather Energy is reportedly looking to file its draft red herring prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) next week for an INR 4,500 Cr IPO in a mix of a fresh issue and offer for sale (OFS).

The emobility unicorn is targeting a valuation of around $2.5 Bn for the IPO, Moneycontrol reported citing sources. 

The development comes on the heels of Ather’s competitor Ola Electric going public by raising over INR 6,145.6 Cr in total. The Bhavish Aggarwal-led startup went public at a valuation of $4 Bn, which many market experts deemed quite high.

In June, Ather’s board also passed a resolution during its annual general meeting to convert the startup into a public company from private, starting the process for the company to list on the bourses. 

Ather joined the unicorn club recently after raising INR 600 Cr ($71 Mn) from its existing investor National Investment and Infrastructure Fund (NIIF) at a post-money valuation of  $1.3 Bn.

Prior to this, it raised debt funding of INR 60 Cr (around $7.1 Mn) via non-convertible debentures (NCDs) from InnoVen Capital. Pawan Munjal-led Hero MotoCorp is one of the leading investors in the startup, owning a 40.89% stake.

Founded in 2013 by Tarun Mehta and Swapnil Jain, Ather Energy manufactures escooters and  battery packs. It also operates its own charging infrastructure. After building its market on its 450 series of escooters, the startup recently launched a family escooter series Rizta and forayed into the smart helmet category.

In June, Ather also announced setting up its third manufacturing facility in Maharashtra to manufacture escooters and battery packs. Recently, it expanded its business to Sri Lanka, marking its second overseas foray after Nepal.

Currently, in terms of escooter sales, Ather is at the fourth position in the market, behind Ola Electric, TVS Motor, and Bajaj Auto.

Ather’s total vehicle registration in August stood at 10,873 units, growing almost 52% year-on-year (YoY).

However, like Ola Electric, Ather also continues to be a loss-making entity. Its net loss widened 22.5% to INR 1,059.7 Cr in FY24, as per the annual report of Hero MotoCorp.

It is pertinent to note that the much-anticipated IPO of Ola Electric witnessed a muted market debut last month. However, the shares are currently trading over 44% higher than their listing price.

The post Ather Energy Eyes INR 4,500 Cr IPO, To File DRHP Next Week appeared first on Inc42 Media.

The electric vehicle (EV) manufacturing in India is set to get a big push with the Centre reportedly considering expanding the scope of the upcoming FAME-III scheme with a proposed outlay of INR 11,000 Cr.

The government sops under the third iteration of the Faster Adoption and Manufacturing of Electric Vehicle (FAME) scheme will likely be extended to electric ambulances and police vehicles, CNBC-TV18 reported, citing government sources.

The Centre is reportedly hopeful that extension of the FAME-III subsidy scheme to newer vehicle categories such as electric buses and three-wheelers will directly benefit the public.

Further, the government is also considering additional sops for EV buyers who are willing to scrap their old internal combustion vehicles. However, a final decision is yet to be taken.  

The Centre already provides benefits such as 5% GST and road tax exemptions for electric cars. 

This comes on the heels of the announcement by union minister H. D. Kumaraswamy that the Centre will launch the FAME-III subsidy scheme within the next two months.

Pertinent to note that FAME-II, the previous edition of the demand incentive scheme for EVs, expired in April. While the EV industry was waiting for the Centre to extend the policy or introduce the FAME-III scheme, the expectations did not materialise.

However, the Ministry of Heavy Industries launched the INR 500 Cr Electric Mobility Promotion Scheme (EMPS) 2024 earlier this year. It is a stopgap scheme to incentivise the EV industry with demand subsidies before the launch of the FAME-III scheme.

While the EMPS was expected to end in July, it has been extended till September end. 

The FAME-II underwent massive turmoil last year as nearly half a dozen electric scooter makers were found in violation of the local sourcing norms that had to met to claim incentives. Companies such as Hero Electric, Okinawa Autotech, Ampere EV, Revolt Motors, Benling India, Lohia Auto and AMO Mobility were slapped with fines of crores of rupees for the violations, which led to months of mudslinging among the government and industry players.

Owing to subsidy cuts and uncertainty about the FAME scheme, Indian two-wheeler EV sales have been on the decline. The total EV two-wheeler registrations fell to 88,473 units in August from over 1.07 Lakh units registered in July, as per Vahan data.

The post Centre Considering Outlay Of INR 11K Cr For FAME-III, Sops For E-Buses & E-Rickshaws appeared first on Inc42 Media.

The Delhi government has withdrawn a waiver of road tax on electric cars and two-wheelers, which has reportedly hit electric vehicle (EV) sales in the national capital.

Industry insiders told Economic Times that Delhi authorities withdrew the waiver on August 31. 

“… The state government was to take a decision on extension of road tax waiver on EVs. But that did not happen even though the cap on the number of vehicles to get the benefit has not been reached. The gains accrued so far stand to get derailed if the matter is not resolved quickly,” an official told ET. 

As per the report, industry executives said that the development has led to a sharp rise in prices and impacted sales “drastically”.

“The cost of purchasing an electric vehicle has suddenly gone up by 10%. These vehicles are more expensive than their petrol or diesel counterparts. This added increase in purchase price abruptly has severely hit sales of electric two-wheelers and electric four-wheelers,” an industry executive reportedly said.

The executive further added that registrations so far in September have been “almost negligible”. 

Industry stakeholders are planning to meet state transport authorities next week to convey their grievances and seek a resolution.

The latest policy blow comes at a time when EV two-wheeler sales have been swinging like a pendulum so far in 2024. While registrations declined 18% month-on-month (MoM) in August, the number surged 34% MoM in July. In April, sales cratered 50% on a monthly basis. 

On similar lines, electric car sales have been on a continuous decline for three straight months. The decline has largely been led by factors such as high prices, insufficient charging infrastructure and range anxiety among customers. 

The development comes at a time when the Centre is planning to roll out the third iteration of the Faster Adoption & Manufacturing of Electric Vehicles (FAME) scheme. On September 4, union minister for heavy industries HD Kumaraswamy said that the much-awaited FAME-III scheme will be rolled out within two months.

The post Delhi Govt Withdraws Road Tax Waiver On EVs, Sales Take A Hit appeared first on Inc42 Media.

The third iteration of the central government’s Faster Adoption & Manufacturing of Electric Vehicles (FAME) scheme, or the much-awaited FAME-III, will be rolled out within two months, union minister for heavy industries H. D. Kumaraswamy said.

Speaking at the National Conference on Electric Mobility, organised by ASSOCHAM, Kumaraswamy, said, “The government is unwaveringly committed to advancing India’s EV ecosystem with a focus on fostering local manufacturing and sustainable growth. The third iteration of the Faster Adoption & Manufacturing of Electric Vehicles (FAME) scheme will be rolled out within two months.” 

FAME-II, the previous demand incentive scheme for EVs which was launched in 2019, came to an end in April this year. While the EV industry was waiting for the Centre to extend the policy or introduce the FAME-III scheme, the expectations did not materialise.

However, the Ministry of Heavy Industries introduced the INR 500 Cr Electric Mobility Promotion Scheme (EMPS) 2024 earlier this year. It is a stopgap scheme aimed at helping the EV industry with demand subsidies before the launch of the FAME-III scheme.

While the EMPS was expected to end in July, it recently got another extension till September end. 

It is pertinent to note that FAME-II underwent massive turmoil last year as several players were found in violation of the localisation norms required to avail the subsidy. Several players were also fined crores of rupees for the violations, which led to months of mudslinging among the government and industry players.

Speaking during the conference on Wednesday (September 4), Kumaraswamy also reportedly said that the ministry has started receiving several suggestions for FAME-III, including from the Prime Minister’s Office. 

“The transition to electric mobility requires a skilled workforce and we are working closely with industry bodies to address the skill gap for a future ready workforce. As we move forward, the focus is now on accelerating adoption of EV across segments including heavy-duty trucks, strengthening the EV value chain, enhancing related infrastructure and policy boost to encourage innovation and investment in electric mobility,” said Kumaraswamy.

Amid changes in subsidies and uncertainty about the FAME scheme, Indian two-wheeler EV sales are also witnessing volatility. The total EV two-wheeler registrations fell to 88,473 units in August from over 1.07 Lakh units registered in July, as per Vahan data.

The post FAME-III To Be Launched In Two Months: Union Minister Kumaraswamy appeared first on Inc42 Media.

After a sharp rise in July, two-wheeler electric vehicle (EV) registrations witnessed a decline of about 18% in August. The registrations of Ola Electric, the leading EV two-wheeler player in terms of market share, fell below 30,000 units last month. 

Total EV two-wheeler registrations fell to 88,473 units last month from over 1.07 Lakh units registered in July, as per Vahan data as of September 2. However, the registrations rose 41% compared to 62,782 units in August 2023.

Recently listed Ola Electric’s total escooter registrations slumped 34% month-on-month (MoM) to 27,517 units in August. Its vehicle registrations stood at 41,712 units in July and 36,832 units in June.

It is worth noting that following its public market debut, the Bhavish Aggarwal-led EV startup unveiled its electric motorcycles in August. Its three electric motorcycles – Roadster X, Roadster, and Roadster Pro – are priced between INR 74,999 and INR 2,49,999.

Meanwhile, Jefferies pointed out in a research report recently that while Ola Electric’s market share rose to 35% in FY24 in the EV two-wheeler category from 21% in FY23  and further to 49% in the first quarter of FY25, the EV manufacturer has started seeing a decline now. 

Ola Electric’s market share slipped to 39% in July and to 33% in August, while legacy players like TVS Motor and Bajaj Auto have been regaining their market shares, the brokerage noted in the report released mid-August.

In fact, amid an overall decline in the EV two-wheeler sales in August, TVS’s registrations fell about 11% to 17,544 units from 19,640 units in July.

On the other hand, Bajaj Auto’s escooter registrations were down merely about 6% MoM to 16,706 units in August.

Currently, Ola Electric, TVS, and Bajaj are the top three two-wheeler EV players in India. When compared on a year-on-year (YoY) basis, Ola Electric’s vehicle registrations grew almost 47% in August, while TVS saw a 13% rise. Meanwhile, Bajaj Auto saw a massive 154% YoY increase in registrations.

As per the Vahan numbers, Ola Electric’s market share in the EV two-wheeler segment stood at 31% in August as against 39% in July. TVS held about a 20% market share last month as compared to 18% in July. Bajaj Auto increased its market share to 19% from a little over 8% in July. 

Ather Energy was at the fourth spot with about 12% market share in August as against 9% in July. 

Ather’s escooter registrations increased 7.4% MoM to 10,830 last month. Recently, the EV startup also joined the unicorn club with an INR 600 Cr ($71 Mn) fundraise.

Okinawa, Hero Electric, Pure EV, Revolt, and a few others, who have been under pressure since the FAME II fiasco last year, continued to witness decline in sales in August.

Meanwhile, one of the newest escooter players in the Indian automotive market, River, has started seeing an increase in sales. Its EV registrations grew over 20% to 268 units in August from 222 units in July. 

In June, the startup saw about 200 vehicle registrations. In January this year, River only had 43 units of EV registrations. Speaking to Inc42 during its $40 Mn fundraise earlier this year, River’s cofounder and CEO Aravind Mani said that the startup was not looking at leading players but was focusing on building its fundamentals.

Meanwhile, electric motorcycle manufacturer Ultraviolette’s vehicle registrations stood at 46 units in August, a slight decline on a MoM basis. 

It is pertinent to note that the number of EV registrations in July this year was the highest after 1.4 Lakh units recorded in March, the month when the FAME-II subsidy scheme came to an end. 

The Federation of Automobile Dealers Associations (FADA) attributed the growth in this category of EV sales in July this year to discounts and the nearing deadline for the end of the Electric Mobility Promotion Scheme (EMPS) 2024 scheme deadline.

The Ministry of Heavy Industries earlier introduced the INR 500 Cr EMPS 2024 earlier this year. It is a stopgap scheme aimed at helping the EV industry with demand subsidies following the end of the FAME-II scheme and before the launch of the FAME-III scheme.

While EMPS was expected to end in July, it recently got another extension till September end.

Overall, total EV registrations in the country, across categories, declined to 1.63 Lakh units last month from 1.87 Lakh units in July.

The post Two-Wheeler EV Registrations Slip 18% MoM In Aug, Ola Electric Loses Market Share appeared first on Inc42 Media.

Just days after joining the unicorn club, electric two-wheeler maker Ather Energy has now expanded into Sri Lanka, marking its second overseas foray after Nepal.

In November last year, the company commenced its maiden international operations with Nepal, and plans to launch its first experience centre in Sri Lanka in the next quarter through a collaboration with Evolution Auto Pvt Ltd, a joint venture among Sensei Capital Partners, Atman Group and Sino Lanka Private Limited.

Evolution Auto Pvt Ltd will serve as Ather Energy’s national distributor in Sri Lanka, managing sales and service operations, the company said in a statement.

Apart from retailing its electric scooter range, the company will also focus on building a fast charging network across the market for easy adoption of EVs.

“Sri Lanka has been a part of our global expansion plans after Nepal. With the increasing cost of ownership of petrol vehicles and the economic and environmental benefits of electric vehicles, the Sri Lankan market has shown an increasing preference for EVs,” said Ather Energy’s CBO Ravneet Singh Phokela. 

“Our mission at Evolution Auto is to pioneer sustainable transportation in Sri Lanka, making eco-friendly electric mobility accessible and efficient for all,” said Evolution Auto’s CEO Zahran Ziyawudeen. 

Founded in 2013 by IIT Madras alumni Tarun Mehta and Swapnil Jain, Ather Energy currently offers electric scooters including the Ather 450X and 450S. It recently introduced its first family scooter, Rizta, in April 2024.

In India, Ather claims to have expanded its retail network to 208 experience centres and installed 1,973 fast-chargers across the country as of March 31, 2024. The company’s Nepal operations, launched last year, now include 3 experience centres and 7 fast-charging grids.

Last week, Ather secured funding of INR 600 Cr ($71 Mn) from existing investor National Investment and Infrastructure Fund (NIIF) at a post-money valuation of $1.3 Bn.

Ather is the latest to join India’s unicorn club this year after Bhavish Agarwal’s AI startup Krutrim AI, fintech SaaS startup Perfios and ride-hailing portal Rapido.

Prior to that, in June, the electric two-wheeler manufacturer’s board passed a resolution during its annual general meeting, to convert the startup into a public company from private as it gears up for an initial public offering (IPO) later this year.

Ather Energy’s net loss widened 22.5% to INR 1,059.7 Cr in FY24 from INR 864.5 Cr in the previous fiscal year.

The post Ather Energy Marks Second Overseas Foray With Sri Lanka To Drive EVs Adoption appeared first on Inc42 Media.

Electric two-wheeler manufacturer Ather Energy has reportedly secured funding of INR 600 Cr ($71 Mn) from existing investor National Investment and Infrastructure Fund (NIIF) at a post-money valuation of  $1.3 Bn.

Ather is the latest to join India’s unicorn club this year after Bhavish Agarwal’s AI startup Krutrim AI, fintech SaaS startup Perfios and ride-hailing portal Rapido.

The development was reported by the Economic Times.

Founded in 2013 by Tarun Mehta and Swapnil Jainy, Ather Energy is one of the major players in the Indian electric two-wheeler market. Besides manufacturing and servicing electric two wheelers, the startup also operates its own charging infrastructure and is involved in storage, distribution and management of electric power and other ancillary services.

Inc42 has reached out to Mehta for comments on the development. The story will be updated based on his response.

The EV company had NIIF on board as an investor during its Series E round of $128 Mn alongside an existing investor Hero MotoCorp, among others.

This new capital raise follows its previous debt funding of INR 60 Cr (around $7.1 Mn) via non-convertible debentures (NCDs) from InnoVen Capital. 

Also, the EV maker is eyeing a public listing by the end of this year at a valuation of around $2 Bn. In the run up to its initial public offering (IPO) launch, the startup converted into a public entity last month.

Besides the conversion into a public entity, the startup is also increasing its authorised share capital to INR 50 Cr from INR 93.6 Lakh.

The EV startup counts Hero MotoCorp, Flipkart cofounder Sachin Bansal and Zerodha cofounder Nikhil Kamath, among its investors.

Meanwhile, Ather Energy’s net loss widened 22.5% to INR 1,059.7 Cr in FY24 from INR 864.5 Cr in FY23, as per the annual report of Hero MotoCorp.

However, the startup’s revenue from operations rose 0.3% to INR 1,789.10 Cr during the year under review from INR 1,783.60 Cr in FY23.

Just last month, Bengaluru-based Rapido bagged a funding of $120 Mn (about INR 1,000 Cr) from existing investor WestBridge Capital at a post-money valuation of a little over $1 Bn, in a Series E funding round through three of its related entities – Setu AIF Trust, Konark Trust, and MMPL Trust.

Updated at 02:15 PM

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