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Ather Energy is preparing to unveil an innovative new business model as it looks to intensify the competition in the electric two-wheeler market with legacy players such as TVS Motor and Bajaj Auto, as well as new-age players such as Ola Electric.
The Bengaluru-based automaker plans to introduce a battery-as-a-Service model for its two-wheelers soon. The company’s Chief Business Officer Ravneet Phokela confirmed the plan for launching BaaS to Autocar Professional.
Battery-as-a-Service (BaaS) is a business model that aims to make electric vehicles more affordable and competitive with ICE models by separating the ownership of the battery from the ownership of the vehicle.
The model consumers pay for battery usage on a subscription basis or per kilometre driven. This reduces the upfront cost of an electric vehicle as the battery accounts for 30-40% of the cost of an electric vehicle.
“Our studies indicate that there is an inherent desire in the market to buy EVs. Some consumers understand the benefit of total cost of ownership, while some have the challenge of the initial cost of acquisition. We believe this [BaaS] can solve that challenge,” Phokela said.
Phokela, however, did not disclose the exact date when the company plans to launch the BaaS model. Sources said it is likely to be announced in a week.
Ather Energy’s largest shareholder – Hero MotoCorp – has also announced that it will launch the BaaS model for its upcoming Vida VX2 electric scooter from July 1. In the passenger vehicle segment, JSW MG Motor has introduced this model for its Windsor EV.
Ather Energy’s plans for BaaS come amidst expansion of retail network and product portfolio, and technological innovation. The company is doubling its retail outlets while it is also set to unveil the next-generation fast charging technology and a new platform, EL, for affordable electric scooters.
The automaker has announced an expansion of its retail footprint to over 750 stores by year-end from the current store count of around 350. The strategy focuses on reach, entering new cities – especially North India – and density – adding outlets in high-volume metros, where half its stores drive 70% of sales.
The electric two-wheeler market is undergoing a seismic shift, with legacy players TVS Motor and Bajaj Auto capitalizing on Ola Electric’s struggles.
In FY25, the market grew 21% on year to 1.15 million units with Ola Electric holding 29.9% market share (3.44 lakh units), followed by TVS at 20.7% (2.38 lakh units), Bajaj at 20.1% (2.31 lakh units) and Ather at 11.4% (1.31 lakh units).
Ather’s premium positioning—emphasizing quality, software, and ecosystem integration sets it apart but limits its addressable market. Its 11% share in FY25, almost flat from FY24, reflects growth in share of TVS and Bajaj.
Ather’s strength in the ₹1.2 lakh+ segment (52% of EV sales) delivers healthy margins but leaves it with just a negligible share in the sub-₹1.2 lakh space, where TVS, Bajaj, and Ola dominate with affordable models.
As legacy players expand their EV portfolios — TVS planning a new scooter by the fourth quarter of FY25 and Bajaj looking at gig-focused EVs — Ather is looking to diversify its product portfolio to stay ahead in the competition.
The company has recently said that it will showcase the new EL platform and concept vehicles at an event in August. It also plans to launch next-generation fast chargers and an upgraded version of its software stack, Ather Stack 7.0.
“The new EL platform, engineered to be versatile and cost-efficient, will enable Ather to expand its product lineup to cater to a wider range of customer needs, while the new fast charging solution will make charging quicker and more convenient,” the company said.
Till now, Ather has adopted a “mass premium” positioning backed by product engineering, software innovation, and consumer experience.
While competitors have introduced aggressively priced models to drive volumes, Ather has resisted the temptation to play in the low-cost category, under Rs 1 lakh. The company’s flagship 450 model is priced between Rs 1.2-1.9 lakh, while family-oriented Rizta scooters come at Rs 1.1 lakh.
To capture a larger share of the electric two-wheeler market, Ather Energy is set to intensify its competitive efforts. This push is fueled by the plans for the introduction of the BaaS model, an affordable new scooter, advanced fast-charging technology, and an ambitious goal to double its retail presence to over 750 stores with a 1:1 sales-to-service center model.
These moves directly target Ola Electric’s strong market volume, achieved through budget-friendly models, and the significant retail advantage and customer loyalty held by established legacy manufacturers. ENDS
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