The entry of new diversified products along with an expanding network will play a big role in tripling and quadrupling the penetration of electric vehicles in the Indian market, says Tarun Mehta, CEO and Co-founder of Ather Energy – a leading electric two-wheeler maker.
Speaking at the Seminar on EV manufacturing in Gandhi Nagar at the 10th Global Summit of Vibrant Gujarat, Mehta said, there are many major players who are currently selling only one or two products in the marketplace, which is not common.
“You need a variety of options for people to feel compelled to walk in. A wider product portfolio is as important as distribution growth. As we go from having 1 scooter each to possibly 2-3 scooters and 3-4 bikes each, the current penetration levels will automatically triple or quadruple, you add a layer of distribution and the fast penetration is inevitable,” said Mehta.
He informed that some of the large cities like Bengaluru and Nasik have penetration of 30% and 45% respectively.
“Imagine what can happen when we all have enough scooters, we all have motorcycles and enough distribution. And none of this requires new fancy technology by the way. All of this is good old fashioned engineering hours put in, to crack it,” he explained.
During the calendar year 2023, the electric two wheeler market registered a growth of 36% with retails of 8.57 lakh units, accounting for 60% of 1.5 million – all electric vehicles sold in the country.
Mehta forecasts that the Indian electric two wheeler market should grow more than 10-fold in the next five years to about 1.2 crore or 12 million units, with almost 10-15% of the total output will go towards the overseas markets.
The company has cumulatively sold over 2 lakh units and the last 1 lakh units were achieved in the last year alone.
On its part, the company this week decided to drop the prices of its vehicle 450X by Rs 20,000 to Rs 25,000 to make it more accessible for prospective buyers.
Ather Energy has already announced that the company plans to add a family scooter to its existing line up of products.
“It’s designed with your entire family in mind, offering comfort, ample size, and a whole lot more – all wrapped up in one fantastic package. We’re ensuring it’s affordable, making the Ather family experience accessible to more people,” said Mehta on X late last year.
