Ather Energy says tech innovation, not sales volume, will win profitability race
Instead, according to Tarun Mehta, the founding partner and general manager of the Bengaluru -based company, investments in technology focusing on improving processes that can help two -wheeled home manufacturers to achieve better margins.
“There is a wrong assessment that everyone who produces more of the automotive industry will be a better margin,” Mehta Mint told Mehta Mint. He said.
“Volume has played a minimal role in the unit economy for years. There is a ton of value engineering.
Birhaş still avoids
Comments of the founding partner of the country’s fourth largest electric two -wheeled company, inheritance and at a time when it wants to scale the general sales of the new age competitors in the segment. Currently, no electric two -wheeled company has achieved a bothering point for homework.
However, Ola Electric, Bajaj Auto and Hero drew the path of profitability at a time when the first five -electric two -wheeled companies received approximately 90% of the general market share.
In the FY25, the country sold a two -wheeled 1.15 million electric electric with an increase of 21% in the previous financial year.
All these companies organize new launch and want to scale sales. Motocorp, the biggest shareholder of ATER, said that for the January-March period in their earnings, the monthly volumes of 4,000 units in the last financial year aim to scale their monthly volumes to 25,000-30,000 units in the next two years.
Ola Electric, an initial rival of ATER, aims to sell 25,000 per month for breaking at the Ebitta level.
Meanwhile, Legacy players have grown in TVS and Bajaj, and both of them exceeded 230,000 units in 2025 financially. 26 In the financial year, both TVs and Bajaj took the lead as a sales collection.
He is not interested in the sales gap
However, Mehta is not worried about the sales gap with former players.
Mehta said, “Everyone bets on growth. Cost structures are similar to the purchase level. So the difference between us and the competitors is not a number that shakes the world.”
Mehta said, “Your cost differences do not come much from the scale. The scale has an effect, but it is a much greater effect in engineering and design, so we choose to focus on these areas so intensely. The real race is that the competition will be captured or we can catch up to the distribution first. Me
Focusing on technology, ARER plans to double the distribution network from 351 stores in 25 financial years by the end of the existing fiscal year.
Ater counts Bajaj, TVS and Ola Electric Ltd as competitors.
In FY25, ATER Energy is a La812 CRORE LOSS, Reduction LaThe previous year 1,060 Crore. The company’s operating profit margin rose from -39% to -26% in the last financial year.
The company has sold 130,944 vehicles in the last financial year.
Analysts argue that profitability pushing process should take into account both volume and productivity through technology -related improvements.
“Both must have a mixture. Supply chain initiatives should support volume growth. If you look at the gross edge gap, ice players had a margin of 18-20% last year in the range of 35-40%.
Since the listing in May, ATER’s share price increased by 10%, while Nifty Automatic Index increased by 3%.
