Ather Energy reports 101% YoY growth in June 2023 electric scooter sales
Delhi : Ather Energy, the renowned electric two-wheeler manufacturer, recently released its sales figures for June 2023. Despite a significant year-on-year growth of 101%, the company experienced a substantial drop in volumes compared to the previous month. This decline can be attributed to the rollback of the FAME II subsidy, leading to price hikes across the electric two-wheeler sector.
Impressive YoY Growth, but Monthly Volumes Decline
In June 2023, Ather Energy successfully delivered 6,479 units of its 450X electric scooter range. This figure represents a remarkable 101% year-on-year growth when compared to June 2022. However, on a month-on-month basis, the volumes dropped by more than half. The decrease in sales volume was a direct consequence of the FAME II subsidy rollback in June, resulting in increased prices across the electric two-wheeler segment.
Significant Decline in Sales Volumes
In May 2023, Ather Energy achieved a substantial sales volume of 15,256 units. However, the company experienced a decline of 57.53% in volumes in the following month. This drop can be attributed to the price hike of ₹30,000 on the 450X range. The standard version is now available at ₹1.28 lakh, while the Ather 450X Pro Pack is priced at ₹1.49 lakh (ex-showroom, Delhi).
Introduction of the Affordable 450S Variant
In an effort to offer a more accessible option, Ather Energy launched the 450S variant priced at ₹1.30 lakh (ex-showroom) in June. This variant features a 3 kWh battery pack, offering a range of 115 km (IDC) and a top speed of 90 kmph. The 450S model comes with fewer features compared to the 450X. Despite the decline in sales, the company remains optimistic about a bounce-back in the next two to three months.
Ather Energy's Perspective on the Drop in Volumes
Ravneet Singh Phokela, Chief Business Officer of Ather Energy, acknowledged the drop in volumes in June. He attributed the decline to the recent price increase due to the lower FAME subsidy and consumers advancing their purchases into May. Despite the slightly greater drop than anticipated, Phokela expressed optimism about the industry's recovery over the next two to three months.
Phokela emphasized that a gradual phase-out of subsidies would allow consumers to adjust to more realistic market prices. Ather Energy aims to make EV scooters more affordable and accelerate their adoption. To achieve this, the company introduced India's first 60-month loan product and continues to collaborate with finance partners to develop exciting plans for different consumer segments. Additionally, Ather Energy is expanding its retail footprint, with 131 experience centers in 90 cities across India.
Conclusion: Navigating Through Short-term Challenges for Long-term Progress
Despite the drop in volumes and challenges posed by the subsidy rollback, Ather Energy remains optimistic about the future. The significant year-on-year growth in sales demonstrates the increasing demand for electric scooters. With a focus on affordability, innovation, and expanding their reach, Ather Energy aims to overcome short-term hurdles and contribute to the long-term progress of the electric mobility sector.
