Rapid Growth of Electric Two-Wheelers in India
The electric two-wheeler market in India has witnessed tremendous growth over the past few years, driven by increasing environmental concerns and rising fuel prices. With the advent of innovative electric vehicle (EV) technologies, several companies are vying for a larger share of this burgeoning segment. Ola Electric leads the pack with the largest market share and has recently made headlines with its Initial Public Offer (IPO). Meanwhile, Ather Energy, another prominent player in this arena, is poised to expand further as it files for an IPO valued at over $530 million (approximately ₹45 billion).
Ather Energy’s IPO and Valuation
According to reports, Ather Energy has submitted its IPO documents to the Securities and Exchange Board of India (SEBI), indicating plans to issue new shares worth approximately ₹31 billion. Notably, existing investors, including Hero MotoCorp, which holds a 37.2% stake in Ather, will also participate in the offering. However, Hero MotoCorp has opted not to sell its shares in this IPO. The anticipated valuation of Ather Energy is estimated to exceed $2.5 billion, illustrating the confidence investors have in the company’s growth potential.
Investment Plans and Expansion Strategy
Ather Energy aims to use the funds procured from the IPO for significant investments in manufacturing and research and development. The company is on track to establish a new electric two-wheeler factory in Maharashtra, which will enhance its production capabilities. Furthermore, Ather has recently ventured into the international market, starting operations in Sri Lanka in collaboration with Evolution Auto, and plans to open an experience center there in the upcoming quarter.
Charging Infrastructure and Product Range
In a bid to improve the accessibility of electric scooters, Ather Energy is also focusing on developing a fast-charging network. After successfully launching its first international outlet in Nepal, the company has established three experience centers and seven fast charging grids in the region. In India, Ather currently operates over 200 experience centers and has reached a significant milestone by manufacturing 200,000 electric scooters. Their product lineup includes four models: the 450S, 450X, 450 Apex, and the recently introduced Rizta family scooter, which is designed with added comfort featuring a longer and wider seat.
Conclusion
The electric two-wheeler market in India is set for further growth as companies like Ather Energy and Ola Electric expand their offerings and reach. With increasing consumer awareness and government support for EV initiatives, the future appears bright for electric mobility in the nation.
| Company | IPO Value | Valuation | Manufacturing Milestone | Electric Models | Stakeholders |
|---|---|---|---|---|---|
| Ather Energy | ₹45 billion (approx.) | >$2.5 billion | 200,000 scooters | 450S, 450X, 450 Apex, Rizta | Hero MotoCorp (37.2% Stake) |
| Ola Electric | Over $730 million | N/A | N/A | Various models | N/A |
