Ather Energy Bets On EL Platform To Power Its Next Growth Phase

It took 12 years for Ather Energy to go from 0 to 2, in terms of models in its portfolio. It wants to increase that run rate starting next year, and thereby embark on a new growth journey. Powering the EV maker to do that will be its new platform called EL (short for Enlightened). 

“We've already demonstrated with Rizta that about 18 months is the time we are able to build a completely new product on an existing platform, and that platform was not even designed for versatility,” Swapnil Jain, Co-founder and CTO, Ather Energy tells ACKO Drive. If required, the interval between two new offerings on the EL platform can even be less than 18 months.

Scalability, cost optimisation, and versatility are the three core pillars of the new platform, developed in around 18 months. The platform is planned to spawn products over the next 5-7 years. And these products could range from a family scooter, a sporty one, or even a maxi scooter. The EL platform can house battery packs of 2kWh to 5kWh.

It's been a decade of “a lot of learnings” in terms of the evolving customer preferences, manufacturing, servicing, and supply chain, for Ather Energy. “And that is something which has now given us the opportunity to actually relook at platform (engineering) altogether, addressing a lot of the limitations which the current platform would have. And that’s where the EL platform comes in,” says Jain.

A major feature in the EL platform is an integrated charger and motor controller, which offers a twin advantage of space and cost saving. The new platform, also being designed for cost optimisation, could help Ather Energy in achieving better revenue margins on products based on it. According to the company's statements, the unibody frame results in a 15 percent reduction in components used, while total cost of manufacturing per bike also reduces by 15 percent. The service interval for EL platform bikes will be 10,000km, double that of current models.  

Plan for new markets within India, and overseas  

While the new platform will help Ather Energy to enhance its competitiveness in the domestic market, it will also allow the EV maker to tap markets outside India. Currently it has a small presence in Nepal as an export market. “One aspect of versatility was also serving the international market. That's definitely a part of our platform design,” says Jain.

Within the country, Ather has a share of around 17 percent in the emerging EV market. It claims a leadership position in the Southern India market for electric scooters, with a share of 22-24 percent. Middle India is categorised as the “growth market” for Ather. “And the rest of India are what we call nurture markets, where we are investing for the next phase of growth,” says Ather Chief Business Officer Ravneet Phokela.

In the first half of the current month Ather Energy has managed to reach the number two spot. This may be an aberration as its production schedule remained more or less unaffected by the rare earth magnet crisis. According to the company, having a dual source policy, healthy inventory levels, and shifting from heavy rare earth magnets to light rare earth magnets which may not have supply restrictions helped it maintain its production schedule.  

Ather Energy’s market expansion drive includes a plan to expand its retail network from close to 450 outlets currently to 700 by March 2026. Currently, of its two models – 450X and Rizta, the latter contributes to around 70 percent of the EV maker’s sales. 

The new EL platform may see commercial production initially in Ather Energy’s Hosur plant, but the EV maker’s upcoming plant in Chhatrapati Shambhaji Nagar will be its main production base.