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Ather Energy is planning a major expansion of its retail network over the next 24 months. The company aims to increase its existing network of around 750 stores to between 1,800 and 2,000 outlets. The expansion will coincide with the rollout of its new Konarc family electric scooter and an increase in manufacturing capacity.
Ather currently sells electric scooters such as the 450X and Rizta, which are positioned in the premium and mass-premium segments. With its new EL platform, the company is looking to broaden its product portfolio and address the gap in the more affordable electric scooter segment. The Konarc is the first production model based on the EL platform.
The new Konarc is being offered in two variants with six battery options. It starts at an ex-showroom price of Rs 99,999, with deliveries scheduled to begin in September. Ather Energy Chief Business Officer Ravneet Phokela said the company is targeting 1,800 to 2,000 stores over the next 24 months.
The retail expansion comes as Ather prepares to increase sales of electric scooters based on its new EL platform. The platform has been designed to support different types of scooters, ranging from commuter and family models to high-performance products.
The EL platform can accommodate different battery capacities, wheel sizes and dashboard designs. This is expected to reduce the need for a separate platform for each scooter and help Ather introduce new products for different customer segments more quickly.
According to Ravneet Phokela, the domestic market will remain Ather’s primary focus in the medium term. While exports are expected to become a larger part of the company’s business in the future, international markets are likely to make a significant contribution only after several years.
As it prepares to meet rising demand for its new scooter range, Ather is also increasing its manufacturing capacity. The company currently manufactures electric scooters at its Hosur plant, which has an annual production capacity of around 4.2 lakh units.
Ather upcoming Aurangabad manufacturing facility is expected to add around 5 lakh units of annual production capacity once its first phase becomes operational later this year. The company has also indicated that it may consider accelerating the second phase of the Aurangabad facility if demand continues to grow at its current pace.
The EL platform is a key part of Ather’s strategy to expand beyond its existing scooter range. The company expects the platform to help increase its addressable market while also reducing production costs through changes in design and engineering.
These changes include lower use of aluminium and simpler engineering, which are expected to help the company control manufacturing costs as it scales up production.
Ather is currently focused on bringing multiple scooter products based on the EL platform to the market before entering the electric motorcycle segment. The company does not have any near-term plans to launch an electric motorcycle and expects such a product to take more than two years to arrive.
