Ather Energy Won’t Build Sub-Rs 1 Lakh E-Scooter Anytime Soon: CEO Tarun Mehta

In the not-so-recent past, rumours swirled about electric vehicle (EV) start-up Ather Energy’s plans to build an affordable scooter that would cost less than Rs 1 lakh. While this would be an interesting move, it always seemed difficult, given how the scenario in the industry has changed following the reduction in FAME-II subsidies for electric two-wheelers. Now, Ather has confirmed the start-up will not jump into the sub-Rs 1 lakh electric scooter market, with company CEO Tarun Mehta citing viability challenges associated with such a product.

Also Read: Ather 450S Vs 450X: Specs, Features, And Prices

“Ather will not build a sub-Rs 1 lakh scooter in the foreseeable future. I don't understand the product or the viability of it”, Mehta said during an exclusive interaction with carandbike.

The 450S Core, at Rs 1.30 lakh (ex-showroom, after FAME-II subsidy), is currently the most affordable Ather on sale.

Mehta went on to add that Ather will keep an eye on competition and any entrants in the sub-Rs 1 lakh space, but outlined that providing performance at par with a similarly-priced petrol scooter remains a challenge at that price point.

Also Read: Ather 450S Launched In Two Variants; Refreshed 450X Gets Smaller 2.9 kWh Battery

“We'll happily observe if somebody launches a sub-Rs 1 lakh product. I think we’ll learn from them, but we haven't seen the viability of that yet. I think a few launches that were announced at sub-1 lakh, they've all crossed the Rs 1 lakh mark now. I think it's a difficult price point to crack because you’d have to go significantly below petrol scooter performance levels to make it work”, Mehta explained.

The start-up only recently launched its new, entry-level offering, the 450S. Priced from Rs 1.30 lakh (ex-showroom, after FAME-II subsidy), the 450S drops the 450X’s slick 7.0-inch touchscreen infotainment system, has a slightly less powerful motor and a 2.9 kWh battery that enables a real-world range of up to 90 kilometres. Mehta said Ather is gearing up to produce about 10,000 units of the 450S in the initial months, but didn’t indicate if Ather expects it to outsell the more expensive 450X. For perspective, Ather previously offered the 450 Plus, which never outsold the 450X, despite a significant price gap.

Also Read: Ather 450S Review: A Fine Entry E-Scooter That’s Also A Clever Upsell

The 450S was introduced shortly after FAME-II subsidies were slashed in June, but Mehta says the model had been in development for well over a year, and wasn’t a knee-jerk reaction to the policy change. The idea, according to Mehta, was to carve out cost savings from the existing 450 scooter platform without diluting performance in a big way.

“The 450S was ready to go into production late last year. 450 is a performance product line. We couldn’t drop the aluminium frame, make the scooter sluggish or replace the disc brakes with drum brakes. Those are things people rightfully associate with performance. It was the software, touchscreen and the battery size that were actual candidates [for change]”, said Mehta.

Interestingly, Ola Electric – the current electric two-wheeler market leader – revealed its most affordably priced model yet, the S1 X, on August 15. Priced from Rs 90,000 (with a flat Rs 10,000 discount for early buyers), the base S1 X has a 2 kWh battery and a certified range of up to 91 kilometres, but it will only go on sale from December 2023 onwards. Other firms operating in the sub-Rs 1 lakh space up until recently have almost all been pushed up into a higher price bracket following the subsidy structure changes.