Ather Energy is gearing up to launch its first electric motorcycle, setting up the Bengaluru-based EV manufacturer in direct competition with bigger rival Ola Electric, which recently announced its entry into the segment.
“We plan to manufacture our new scooter and motorcycle platforms at Factory 3.0, with a phased expansion plan, to ensure efficient capital utilisation,” the firm said in its draft red herring prospectus (DRHP) it submitted with the capital markets regulator on September 9.
The documents said that the firm is focusing on research and development for the preliminary design of the motorcycle platform.
Also Read: Ather Energy IPO likely to be launched in first half of 2025; Key details
“The platform includes virtual simulation of various motorcycle and battery architectures, prototyping and testing of various concepts prior to finalization,” DRHP said.
Ather announced plans to launch an initial public offering (IPO), which will include a fresh issue of shares worth Rs 3,100 crore and an offer for sale (OFS) of up to 2.2 crore equity shares.
In June, Ather said it will set up its third manufacturing unit in Maharashtra entailing an investment of over Rs 2,000 crore. The new facility to be set up at Bidkin, Aurangabad Industrial City (AURIC), will manufacture both electric two-wheelers and battery packs.
“We plan to construct the Factory 3.0 at Chhatrapati Sambhajinagar (formerly Aurangabad), Maharashtra, India, on a 95-year leased property in both phases, having a total production capacity of 1 million E2Ws per year,” the firm said.
This first phase of Factory 3.0 is proposed to be financed through IPO’s net proceeds and is expected to be completed in March 2027, with a production capacity of 0.5 million E2Ws per year.
The firm’s two existing plants have annual capacities of 4.3 lakh battery packs and 4.2 lakh vehicles.
Ola Electric leads the electric scooter segment followed by TVS Motors. In 2024, the firm sold nearly 109,577 scooters, up from 92,093 in 2023.
Tough terrain
The e-motorcycle segment, which is dominated by ICE vehicles, presents a tough challenge, as the vehicles account for only a fraction of overall bike sales in India.
In August, Ola Electric launched the 'Roadster' series, its first set of e-motorcycles, at a starting price of Rs 74,999.
A few OEMs like Revolt started offering electric motorcycles from FY20. Tork and Ultraviolette followd Revolt’s lead.
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