Ather Energy to enter Sri Lankan market, expand global e-scooter footprint

Ather Energy, one of India’s leading electric two-wheeler (e2W) manufacturers, is set to expand its international footprint by entering the Sri Lankan market. The company plans to open its first experience centre in Sri Lanka in the next quarter, marking its second international market entry following Nepal in November 2023.

The expansion will be facilitated through a partnership with Evolution Auto, a joint venture between Sensei Capital Partners, Atman Group, and Sino Lanka, the company said on Thursday.

Evolution Auto will serve as the national distributor for Ather in Sri Lanka, overseeing sales and service operations. Ather also plans to establish a network of fast-charging infrastructure across the country, aiming to support the adoption of electric vehicles (EVs).

 

Ravneet Singh Phokela, chief business officer at Ather, expressed enthusiasm about the company’s entry into Sri Lanka, emphasising the growing preference for EVs in the market due to rising petrol costs and environmental benefits.

“Ather’s e-scooters are known for their performance, design, and reliability, through which we aim to appeal to new-age Sri Lankan customers who appreciate quality modern products,” Phokela said.

Zahran Ziyawudeen, CEO of Evolution Auto, also highlighted the company’s mission to lead sustainable transportation in Sri Lanka and expressed excitement about the collaboration with Ather to bring world-class electric scooters to the market.

“We are incredibly excited to collaborate with an industry giant like Ather Energy to launch a world-class range of scooters in Sri Lanka,” Ziyawudeen said.

Ather’s move into Sri Lanka follows its expansion into Nepal, where it has established three experience centres and seven fast-charging grids since its entry. In Nepal, the company sells the 450X models with 2.9 kWh and 3.7 kWh battery options, a company spokesperson said.

The company declined to comment on a Business Standard query regarding the total number of vehicles sold in Nepal and the specific products it plans to send to Sri Lanka.

In India, the company has a robust retail presence with 208 experience centres and nearly 2,000 fast chargers as of March 2024. The company’s product catalogue includes four models: the 450S, 450X, 450 Apex, and Rizta.

The Bangalore-headquartered firm has sold approximately 2,45,000 e-scooters in India from January 2020 to August 22, 2024.

Ather is one of the top four electric scooter manufacturers in India, alongside Ola Electric, TVS, and Bajaj Auto. However, competition in the market is tightening. As of August 22, 2024, Ather held a 10 per cent share of the 690,000 electric two-wheelers sold this calendar year.

Founded in 2013, the company is still operating at a loss. In the financial year 2024 (FY24), Ather's losses increased by over 22 per cent to Rs 1,059 crore, while revenue remained flat during the same period.

The firm’s revenue for FY24 was Rs 1,789 crore, compared to Rs 1,783 crore in the previous fiscal, largest shareholder Hero MotoCorp said in its annual report. Ather’s loss stood at Rs 864 crore a year ago.

Ather is also looking to tap the public market by 2025 and has picked HSBC Holdings Plc, Nomura Holdings Inc., and JPMorgan Chase & Co. to help arrange its initial public offering.