It was a ‘big, big day’ for Ather Energy as it became the second two-wheeler electric vehicle manufacturer to go public after Ola Electric in August 2025. We caught up with the man of the moment Tarun Mehta, co-founder and CEO of Ather Energy, who talks us about how the company is looking to scale up its production, introduce new affordable e-scooter without compromising on the customer experience and performance and why sub 1 lakh segment is not a winner’ for them.
Affordability not at the cost of value
Ather Energy is currently in the transition from switching from Lithium-Ion to Lithium Iron Phosphate batteries, which will considerably reduce the expenses and make the electric vehicles cheaper. This will drastically reduce the company’s reliance on Lithium-Ion cells from China and focus on domestically made LFP battery packs. Ather Energy has recently signed a partnership with Indian battery maker Amar Raja for the development of the LFP batteries. The advantage of LFP batteries is that the chemistry does not use rare Earth materials, offers superior thermal stability, shock resistance, and durability, while being more eco-friendly and cost-effective.
Mehta said, “The transition of LFP battery packs will reduce the vehicle cost”. He further explained, “While we continue to import lithium cells today, we are looking at sourcing cells domestically in the coming years. There are multiple partners for whom we are working in India to see domestic production. One of them is Amar Raja, as we continue to buy lithium cells from LG.”
No sub 1 lakh product in the pipeline
Ather Energy is the fourth largest 2W EV manufacturer in India and continues to stay away from the Rs 1 lakh market, while its competitors like Ola Electric, Bajaj Auto and TVS Motor all offer products in this category. Mehta has a different take on the affordable segment as he explains, “In my view, that category is unlikely to be a winner. If you look at the bigger picture, I think more than 50% of the scooter market is now already in the premium category.”
Unlike others in the EV market, Ather Energy has taken a conscious decision not to get into the discount game. Mehta said, “We have stayed away from the discounting approach. I firmly believe that opportunity really lies in offering more value as opposed to offering a lower cost at any cost.”
