Ather Energy not keen on exports, to focus on India for now

Ather Energy plans to begin manufacturing EVs at its 4,00,000 sq. ft. plant in Hosur (Tamil Nadu) by December. While the company will scale up production, it is not keen on exports, expecting domestic sales to account for most of its business.

Ather Energy’s Hosur plant will have an annual production capacity of 1,00,000 units. That figure is for just in Phase I. In Phase II, the company can scale it up to 5,00,000 units if the need be. Even with the potential annual production capacity of half a million units a year, the company doesn’t see itself being too keen about exports, probably because of the immense untapped opportunities in India.

Speaking to CarandBike recently, below is what Tarun Mehta, Co-founder & CEO, Ather Energy, said about exports:

I think the volume problem is always domestic. I think international markets are for better ASPs (Average Selling Prices) and you know sweeter gross margins and a better branding and positioning. Unless you’re a Bajaj, I don’t think your biggest volume is coming by exports. I don’t think exports is going to be linked to when we have the capacity to export.

Tarun Mehta, Co-founder & CEO, Ather Energy

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Speaking further, Mehta indicated that Ather Energy won’t launch export operations just for the sake of it, like simply ship India-focused products everywhere it can. The export operations would involve select markets and take them seriously. Below is what he said:

I think exports would be when we have the bandwidth to sort of you know actually focus on that. Honestly, most export markets are not really going to be export markets. I think we’ll only go to places where we can actually set up like a country division, like actually set up a small assembly locally. So, it’s a while out.

Tarun Mehta, Co-founder & CEO, Ather Energy

By the end of 2021, Ather Energy expects to have a retail presence in 20 cities in India. Ather electric scooters are currently available in Bengaluru and Chennai. Beginning in October this year, the new flagship Ather electric scooter, the Ather 450X, will start becoming available in more cities like Hyderabad, Pune, Delhi and Mumbai. The new locations by the end of 2021 should include even Ahmedabad, Kolkata and Coimbatore, as well as a city in the State of Goa.