Ather Energy on Friday said it will enter the auto insurance services space by setting up a wholly owned subsidiary that will operate as a corporate agent. The move is aimed at making the ownership experience more seamless, with the new entity focusing on offering auto insurance policies in partnership with multiple insurers for Ather customers.
The Bengaluru-based electric two-wheeler maker says the foray will help streamline insurance offerings, improve customer experience and create a recurring revenue stream by leveraging its existing user base. “By taking distribution in-house, Ather will also be able to innovate around EV-specific insurance products, simplify renewals, and potentially improve attach rates over time,” Ather Energy said in a release.
Boosting Margins
Electric two-wheeler makers such as Ather Energy and Ola Electric have been diversifying revenue streams in recent months to boost revenues and improve margins. Ola Electric, for instance, has launched ‘Ola Shakti’, a portable battery energy storage system brand for homes, businesses and solar grid providers, and opened up access to genuine parts for customers and third-party garages. Ather is also leaning on non-vehicle revenue including software and accessories to bolster margins. Non-vehicle revenue, including software sales, accounted for 12% of its topline in Q2FY26.
“By bringing insurance distribution closer to the Ather ecosystem, we can make it simpler, more transparent, and better aligned with how our customers actually use their vehicles,” Ravneet Singh Phokela, Chief Business Officer, Ather Energy, said. He added that the insurance foray will allow the company to work with partners to design auto insurance products that reflect real EV usage, rather than adapting legacy OEM frameworks.
Tailoring Insurance for the EV Ecosystem
Ather’s insurance platform will cater to its existing users, involve no additional customer acquisition costs and is expected to generate steady, incremental revenue with limited investment. The move adds to Ather’s full-integration strategy across its EV two-wheeler ecosystem, spanning vehicles, charging infrastructure, servicing, accessories, ecosystem products, software and insurance.
Shares of Ather Energy were up over 3.5% at ₹687.10 at the time of the announcement.
