The race for dominance in India’s electric two-wheeler (E2W) market is heating up, as Ather Energy Ltd has nearly matched the monthly sales volumes of its rival, Ola Electric Mobility Ltd.
According to Vahan data, Ather achieved its best-ever monthly retail sales of 17,856 units in August, bringing it close to its pure-play rival Ola Electric, which sold 18,972 units during the same period. Notably, Ola’s sales declined by 31% year-on-year, while Ather’s surged 62%, despite its focus on the premium segment.
Ather is India’s third-largest E2W company behind second-place Ola. Its market share has grown, climbing to 14.3% by FY25-end from 7.6% in Q1FY25.
How did Ather pull this off?
Ather’s success is driven by a multi-pronged strategy. The company has established a dominant presence in southern India, commanding a 22.8% market share in the region, bolstered by the launch of its Rizta scooter. In the north and central regions, it has focused on expanding its dealership network, which stood at 446 stores as of Q1FY26.
Crucially, Ather avoids competing on price. Instead, it has invested heavily in R&D, focusing on sleek designs, smart features, and a premium riding and after-sales experience. This has led to customers paying more for a superior product. The management has made it clear they won’t start a price war by selling scooters for under ₹1 lakh.
Ather recently unveiled its new EL platform, which promises lower manufacturing costs, 15% faster assembly, and longer service intervals of 10,000 km. The first model on this platform, the EL01, is set to launch next year. It also showcased Project Redux, a concept moto-scooter that’s part-bike, part-scooter.
It is also aggressively expanding its distribution network, with plans to grow to 700 touchpoints by the end of FY26.
But here is the catch. Despite this growth, profits remain elusive. For FY25, Ather reported an Ebitda loss of ₹581 crore on a revenue of ₹2,255 crore. The company operates on a thin gross margin of 17%, while employee costs account for 18% of sales. However, these are fixed costs, suggesting that profitability can follow as sales volumes increase.
Ather’s impressive growth story is currently its main driver. Significant hurdles remain, including substantial losses, intensifying competition, and potential supply chain issues with rare earth magnets. For now, investors are focused on the upside. Since its 6 May listing, the stock has climbed about 50% from its issue price of ₹321.
