Ather Developing Sub-Rs. 1 Lakh E-Scooter, Ola Effect?
The upcoming Ather electric scooter with a price tag below Rs. 1 lakh could change the game, provided the Ola Scooter costs more
Ather Energy’s upcoming electric scooter could come with a sub-Rs. 1 lakh price tag. CEO of the Bengaluru-based EV firm, Tarun Mehta, has recently conceded that Ather sees a market in the segment below Rs. 1 lakh.
While he did not confirm the fact that the company is working on such a vehicle, crucially, the Ather chief did not deny it either, but simply said, “I think there’s a market at every price point.”
But, Mehta did explain that he does not “want to basically get into price wars” and added that he does not think “it makes sense to set the market up with a price point that you can’t long-term defend or build a business on.”
Thus, it is expected that Ather will launch a new electric scooter with an asking price that undercuts Rs. 1 lakh by next year. This new scooter will be the most affordable product from the EV maker to date.
Currently, the firm sells its 450 Plus scooter for Rs. 1.13 lakhs and its flagship 450X at Rs. 1.32 lakhs in Delhi (prices are ex-showroom). Both have seen a price reduction recently due to the revised Fame 2 norms.
While the basic price of both the 450 Plus and 450X are the same at Rs. 1.71 lakhs, the latter gets a performance upgrade that costs Rs. 19,010/-. Add the Fame 2 subsidy of Rs. 43,500/- and the Delhi government’s incentive of Rs. 14,500/-, we arrive at the final figure.
Interestingly, the scooters cost even less in Ahmedabad thanks to Gujarat government’s Rs. 20,000/- direct-to-consumer incentive.
In order to to get the upcoming electric scooter price tag below Rs. 1 lakh, Ather will have to bring the ex-showroom price of the EV (excluding subsidies) to under Rs. 1.50 lakhs.
The Ather CEO also revealed that he expects Corporate Average Fuel Efficiency (CAFE) norms (which will be put into effect come 1st April, 2022), to further increase the asking rates of internal combustion scooters.
Moreover, Tarun Mehta has said the upgrades developed for the 450X in the future will be focused on improving the EV’s performance. He wants to equip the scooter with a better regenerative braking system, enhanced ABS and make it go faster than it can at present.