SUMMARY
Ather Energy has cut the price of its entry variant scooter 450S by INR 20,000. It would now start at INR 1.09 Lakh in Bengaluru and INR 97,500 in Delhi
Ather’s chief business officer Ravneet Singh Phokela said the startup is embarking on an aggressive growth journey and will add about 100 retail touchpoints in the ongoing quarter
While Ola Electric is leading in the two-wheeler EV sales in the country, TVS Motor leapfrogged ahead of Ather in 2023
As the competition in the electric two-wheeler space intensifies, Ather Energy has slashed the price of its 450S escooter variant by INR 20,000 to grow its sales.
The Bengaluru-based emobility startup said in a statement on Wednesday (January 10) that the new prices for its entry variant scooter – the 450S – would start at INR 1.09 Lakh in Bengaluru and INR 97,500 in Delhi.
Earlier, the model had a starting price of INR 1.29 Lakh in Bengaluru and INR 1.17 Lakh in Delhi.
Besides, Ather said that the buyers of 450S would also be able to choose the ‘Pro Pack’ over the core configuration, which unlocks features such as ride assist, Ather battery protect, AtherStack updates, and Ather Connect free for three years at a lower cost of an additional INR 10,000, against INR 25,000 earlier.
The Ather 450S, which was launched in August last year, comes with a battery capacity of 2.9 kWh, an IDC (Indian Driving Conditions) range of 115 km with a 0-40 acceleration of 3.9 seconds.
Commenting on the decision to reduce the price, Ravneet Singh Phokela, chief business officer at Ather Energy, said that the startup is embarking on an aggressive growth journey to tap into the growing demand for electric scooters.
The startup is also looking to grow its retail network to increase the sales of its vehicles.
“To meet this demand, we are adding about 100 retail touchpoints this quarter, taking our total touchpoints to 350. Along with this, we have reintroduced our entry level scooter – the 450S at a very compelling price point that appeals to a wider set of buyers,” said Phokela. “The Ather 450S at this new price makes for a strong value proposition.”
It is pertinent to note that the step comes at a time when Ather’s rival Ola Electric has jumped ahead in the two-wheeler EV race. Besides, legacy automotive manufacturer TVS Motor also leapfrogged ahead of Ather in 2023. Bajaj Auto is also seeing a rise in its two-wheeler EV sales and seems to be on course to go past Ather.
Following the price revision, the 450S escooter model is priced a little higher than the Ola S1 X. Meanwhile, the new price is lower than the starting price of Bajaj Chetak, TVS iQube, and Hero Vida.
Analysts recently told Inc42 that Ather’s inability to rapidly raise funds was a big disadvantage, resulting in it losing market share to players like TVS Motor and Bajaj. However, Ather could be the closest to Ola Electric in terms of the native EV DNA and hence, the nearest threat, they added.
In September last year, Ather raised INR 900 Cr (about $108 Mn) from Hero MotoCorp and Singapore’s GIC through a rights issue. Last month, Hero MotoCorp said it would acquire an additional 3% stake in the startup for up to INR 140 Cr ($16.8 Mn).
Ather also launched its newest escooter model 450 Apex, priced at INR 1.89 Lakh ex-showroom, earlier this month.
