Ather Energy Cites CNG, Hydrogen And More Alternate Fuels Pose Risk For EV Two-wheeler Adoption

India’s popular electric two-wheeler brand, Ather Energy, has mentioned that there might be risks associated with the adoption of electric two-wheelers with CNG, hydrogen and fuel cell technology set to be arriving for two-wheeler propulsion. This was cited in its draft red herring prospectus that it has filed with SEBI for its upcoming IPO.

“Developments in alternative technologies in ICE vehicles, such as advanced diesel, hydrogen, ethanol, fuel cells, or compressed natural gas, improvements in the fuel economy or other features of ICE vehicles, or lower cost of gasoline, which lower the total cost of ownership of ICE vehicles,” is mentioned under the ‘INTERNAL RISKS’ section. The part narrates where Ather could see a stumbling block for the growth of its future.

Also Read: Ather Working On New Scooter, Motorcycle, and Battery Platform

Clearly, Ather isn’t necessarily stating that such new technologies pose a risk to the two-wheeler buyer, rather a challenge that could affect how the company might perform in the future. Being a fully-electric company, Ather knows the challenges that the public is facing with petrol propulsion. It also pointed out that reduction in fossil fuel prices might also impact buyer decisions.

Another challenge for EV two-wheeler brands is the reduction in subsidy especially the transition from FAME-II to EMPS witnessed sales for Ather dropping. While the government has announced the new PM E-DRIVE scheme to replace FAME-II, the impact on subsidies for two-wheelers still remains uncertain.

Also Read: World EV Day 2024: Top 5 Electric Two-wheeler Launches Of 2024

And we are glad that there are more than one possible future mobility power solution available at our disposal. While fossil fuels will continue to exist for the near future, quite a lot of manufacturers are taking varied approaches to sustainable mobility solutions. Bajaj is spreading its bets with electric, CNG and possibly even hydrogen fuel cells. Kawasaki has been working on the packaging and use of hydrogen for its two-wheelers for a while now. And these are just a few to name. What will emerge as the most viable, and in some cases economical, path for mobility remains a nice mystery.