Ather Energy To Expand Operations To 30 Cities By 2023

Bengaluru-based electric vehicle startup Ather Energy has revealed its expansion plans along the sidelines of the Indian government’s Union Budget announcement. According to a report in Business Standard, the brand intends to expand to 30 cities by the end of FY 2023 and then to 20 more cities by the end of the following year. To achieve this, it is reported that the brand plans to set up a manufacturing plant in 2020, which will have an annual production capacity of 10 lakh units.

Also Read: Ather 450 Range Set To Increase From 65km To 75km

After catering to the home market in Bengaluru, Ather recently entered the Chennai market. This will be followed by Mumbai, Pune, Hyderabad and Delhi. To reinforce the brand’s expansion plans, it is reported that Ather might launch a new product almost every year from now. And we believe Ather might launch an electric motorcycle too. Last month, the brand reportedly raised around Rs 350 crore in its latest round of funding and has earmarked about Rs 130 crore to set up around 6500 charging stations in India by 2023. It is also said that Ather is eyeing the rental and ride-sharing business which should improve electric mobility in urban areas.

Ather Energy also plans to enter export markets like Latin America, Southeast Asia and Europe in five years. However, Ather is yet to reveal the finer details of how it would go about its expansion. It is also unclear which international market the brand will set foot in first.

Also Read: Learnings From Ather’s First Year Of Operations

As a part of the 2019 Union Budget, the Indian government has announced that it will reduce the GST for Electric Vehicles (EVs) from the current 12per cent to 5per cent. And Ather Energy has shown a positive response to this move as it will be beneficial for customers. However, the startup reportedly feels that the government should offer incentives to both OEMs and the supply-chain ecosystem. This should bring about a holistic, business-friendly change in the electric vehicle sector.

Even the Indian government’s think tank, NITI Aayog had earlier proposed a complete ban of sub-150cc two-wheelers from 2025, triggering stiff opposition from the players in the Indian auto industry. So, the think tank has given a deadline to Indian two-wheeler manufacturers to come up with an EV roadmap. It is pretty evident from these developments that electric vehicles are the way forward. Stay tuned to ZigWheels for more updates!

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