India will continue to subsidize electric scooters over the next few years to encourage people to move away from polluting motorcycles, the CEO of electric scooter maker Ather Energy told Reuters on Saturday.
India plans to electrify 70 percent of its two-wheeler fleet by 2030 as the world’s third-largest oil importer looks to reduce its reliance on fossil fuels, industry experts say. We believe that subsidies such as cash incentives are very important to achieve this goal.
“We were able to significantly reduce our reliance on subsidies, but at the cost of losing almost a year of growth,” said Taron, CEO and co-founder of Ather. Mr. Mehta said in an interview.
Mehta was referring to the government’s surprise decision in May to cut cash incentives for electric scooters to 15 percent from 40 percent of the previous pre-tax price.
India’s electric scooter market is small but growing, accounting for 5% of total two-wheeler sales in fiscal 2023-24. Ather was one of the first companies to increase adoption with the launch of the 450 series of electric scooters in 2018, but lagged behind arch-rivals Ola Electric and TVS Motor, whose sales were driven by discounts.
Ather, whose biggest investor is Hero MotoCorp, India’s largest two-wheeler maker, launched a new “family-friendly” electric scooter called Rizta on Saturday. 109,999 ($1,321).
This scooter features a larger seat and storage space than its competitors. Mehta hopes this will attract a wider range of buyers in India’s densely populated northern and western regions, leading to higher sales.
Mr Mehta said Ather, which is in the red, is focused on sales growth but incremental profit will improve as sales volume increases.
“We are not at the break-even point yet. I think there is still a long way to go, but hopefully not too long. I am satisfied that margins are forming at the unit level, so Rizta will play a significant role. “Hope comes true.” the details
Bhupendra Singh Chundawat is a seasoned technology journalist with over 22 years of experience in the media industry. He specializes in covering the global technology landscape, with a deep focus on manufacturing trends and the geopolitical impact on tech companies. Currently serving as the Editor at Udaipur Kiran, his insights are shaped by decades of hands-on reporting and editorial leadership in the fast-evolving world of technology.
