Ather Energy, the electric vehicle startup, has ambitious plans to double its market share to 30 percent by launching two new products by March 2025. Currently holding the third position in terms of market share at 13 percent, with sales of 73,036 units between January and August 2023, the company aims to expand its presence and offerings in the electric scooter market.

Some key points about Ather Energy’s plans and strategy:

New Product Launches: Ather Energy intends to introduce two new electric scooter models, distinct from its existing high-performance offering, the Ather 450X. These new models are expected to cater to different segments of the market, broadening the company’s market reach.

Market Expansion: The company acknowledges that the performance-oriented electric scooter market is not the largest part of the e-scooter market. Ather aims to tap into a broader audience, including families looking for versatile, unisex scooters that can be used by riders of various age groups.

Pricing Strategy: Ather Energy emphasizes that it will not focus on offering the cheapest products in the market. Instead, it seeks to maintain a certain level of quality, finesse, and overall experience in its products. The company plans to target the price range of Rs 1.2 lakh to Rs 1.5 lakh, which covers a significant portion of the market.

Cannibalization: Ather anticipates that the launch of new products may lead to some level of cannibalization of its existing Ather 450 scooters. To address this, they offer the more affordable Ather 450S with a smaller battery and fewer features, providing options for customers with different budgets.

Retail Expansion: Ather Energy plans to expand its retail network significantly. Currently operating around 150 experience centers across 100 cities, the company aims to reach 120 cities and establish 200 outlets by March 2024. This expansion reflects the company’s efforts to adapt its retail model to different market conditions.

Market Consolidation: The electric two-wheeler startup space in India has seen consolidation, with the top four players, including Ather Energy, holding a significant market share. Smaller players have witnessed a decline in their combined market share.

Franchise Model: Ather Energy has adopted a franchise model for expansion and distribution, allowing it to quickly adapt to market dynamics and cater to different regions more efficiently.

Overall, Ather Energy’s strategy involves diversifying its product offerings, expanding its retail presence, and targeting a broader customer base while maintaining its focus on quality and user experience in the premium electric scooter market segment.