Ather Energy CEO Predicts Massive Electric Bike Growth By 2023

Tarun Mehta believes electric models will make up 20 percent of India’s two-wheeler market very soon.

By: Dustin Wheelen

Apr 25, 2022 at 3:37pm ET

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Electric motorcycles and scooters have gradually improved over the years. With battery capacity and maximum range on the rise and charging times falling, many models are becoming viable for more urban riders and commuters. Despite the steady march of progress, customers have flocked to electric vehicles in the post-COVID environment, but Ather Energy’s Founder and CEO Tarun Mehta believes a wave of new adopters is on its way.

Speaking at India’s Autocar Professional EV Forum, Mehta noted the progress that Ather Energy has made in recent years.

“We are on the cusp of change,” claimed Mehta. “The last few months have been terrific. We’ve gone from 3-4 percent market penetration in the scooter segment to 12 percent in a span of 6 months. I think what’s ahead of us is almost 25-30 percent market penetration in the next 12-18 months.”

While Ather has experienced sudden growth in recent months, India’s electric vehicle subsidies have helped consumers adopt the new technology. The incentives program was originally scheduled to end by 2023, but the Indian government recently extended the subsidies to 2024. Purchasing programs may help potential buyers commit, but the region also dictates sales figures.

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According to sales data, many electric bike and scooter buyers reside in India’s Tier 2 and Tier 3 cities as opposed to the country’s largest metropolitan areas. Cities like Chandigarh and Jaipur are suitable for scooters due to larger living quarters and access to a charging point. In cities like Mumbai and New Delhi, residents may not enjoy similar access. Despite the regional limitations and reliance on incentive programs, Mehta believes the industry can continue growing at an accelerated pace.

“But the fact is that electric is more attractive for them on a cost and experience basis,” Mehta stated. “The acceleration, the sound, the lower running costs are all better. That’s not changing. And it’s not just us. It’s a lot of good brands now that are building good quality products. I don’t think customers are going to freak out and say, let’s just sit tight. The interest in EVs is only going to accelerate but there will be more considered purchases in the future.”