Ather Energy: Pioneering Electric Mobility in India
| Case Code: LDEN229 Case Length: 10 Pages Period: - Pub Date: 2025 Teaching Note: Available |
Price: Rs.300 Organization : Ather Energy Industry :Automotive Countries : India Themes: Entrepreneurial Strategy, Brand Development, Advertising & Promotion,Entrepreneurship |
Abstract Case Intro 1 Case Intro 2 Excerpts
Excerpts
Founding And Funding
Tarun and Swapnil wanted a vehicle in which they could use the battery they had made. It was then that they realized that electric vehicles in India were poorly designed. This gave them the idea of venturing into manufacturing electric scooters. Thus began the journey of Ather Energy in 2013. It’s simple yet ambitious goal was to manufacture India’s first smart electric scooter. In the first year, it was very hard for the founders to raise funds given the fact that they were attempting to build an automotive company with no experience, no money, and no support from any investors or industry bigwigs. At that time, funding was difficult to come by for there were no real hardware startups backed by funding..
Ather’s Foray Into E2w Market
Ather showcased its first vehicle the Ather S340 in 2016. The Ather S340 was powered by a lithium-ion battery pack, and featured a digital touchscreen dashboard. Using the smart dashboard, users could create profiles and choose riding modes and other preferences. The smartboard also showed how much distance the vehicle could travel on the existing charge. It came with inbuilt navigation that predicted travel time and also showed details of the road conditions. The data also showed if there were any charging points on the way. The product was sold online..
Charging Infrastructure
Understanding that a robust charging network was critical to EV adoption, Ather set up Ather Grid, a comprehensive public charging network created and designed in India. Ather Grid was the biggest fast-charging network for EVs in the nation, with 38 charging stations in Bengaluru and 14 in Chennai. Since its inception in 2013, Ather Grid had grown to include over 1,000 charging stations in cities across India . These stations were open to all EV users, fostering a community spirit. Riders often shared tips on where to find the best charging spots, creating a supportive network..
Driving Through The E2w Market
Ather’s mission was to drive technological innovation in the electric scooter industry. The company focused intensely on technology and engineering to develop a range of scooters with advanced features. For example, it used a tire-pressure monitoring system that seamlessly integrated with the dashboard and provided real-time tire pressure monitoring and remote accessibility through the Ather app. This empowered riders to maintain optimal tire pressure, a crucial factor impacting both the range and performance of electric vehicles..
Market Impact
In a country where traditional homegrown players and Chinese brands fought neck and neck, Ather Energy managed to achieve great progress. It transformed the Indian EV industry. The company notched up several significant milestones in the Indian EV market. It was one of the first to launch high-performance electric scooters, with the Ather 450 in 2018, followed by the Ather 450X, offering advanced technology and features. Ather also expanded its charging infrastructure with the Ather Grid, installing hundreds of fast-charging stations across major cities..
Competition In The E2w Market
Competition in India’s electric scooter market was heating up. Ather’s success changed the competitive landscape in India. In 2017, Ola, one of India’s most-funded tech startups, set up a subsidiary called Ola Electric. Ola Electric had the world’s largest two wheeler production facility in Tamil Nadu with a planned annual capacity of 10 million units. It was a market leader in the E2W (electric two-wheeler) market in FY 2024. Established brands such as Bajaj and TVS too had begun to invest in electric offerings..
The Road Ahead
After a series of multi-million investments, Ather Energy’s valuation rose to USD 1.3 billion in 2024, officially making it a unicorn startup . Experts opined that the future of Ather Energy would be strongly influenced by its ability to adapt and innovate since the EV market continued to evolve and mature. Ather’s founders set out with a clear mission to make electric scooters that combined cutting-edge technology..
Exhibits
Exhibit I: Central and State Subsidies to Surge E2W Market
Exhibit II: Ather Energy - Investors as of 2024
Exhibit III: Information on Key ETW Players in India (As of 2024)
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