India's electric scooter market sees rapid growth with Ather Energy and Ola Electric

In the electric two-wheeler market in India, Ather Energy and Ola Electric are making significant strides. In April 2023, Ather Energy reported a YoY growth in sales of 117%, with 8,182 units sold, compared to 3,779 units sold in April 2022. However, there was a decline of 30.39% in sales MoM, selling 11,754 units in March 2023. Despite reducing prices of the 450X variant, the company attributed the sales drop to uncertainty around the FAME II policy.

Ather Energy has been expanding its retail footprint and currently has 120 stores across 87 cities, with over 1300 Ather Grid fast chargers. The company discontinued the 450 Plus and now only offers the 450X variant in standard and Pro Pack guise with charger costs bundled into the ex-showroom cost of the vehicle. The 450X is priced at INR 21.15 lakh for the base variant and INR 21.45 lakh for the Pro Pack with all features. Ather Energy is also expanding its charging network to cater to its customers.

On the other hand, Ola Electric announced that it sold over 30,000 electric scooters in April, giving it a market share of around 40% in India. The company's two models, Ola S1 Air and Ola S1, have been well-received by potential buyers, and Ola Experience Centers are being established across the country to provide more information on the products and services.

Ola Electric plans to have 500 centers soon and 1,000 centers by August. The company has also been expanding its Hyper charger network, with 100 chargers set to be installed at 50 locations in Bengaluru alone. With over 200,000 customers, Ola Electric is aiming to accelerate its momentum and continue expanding aggressively on both the product front and its direct-to-consumer network.

Anshul Khandelwal, Chief Marketing Officer at Ola Electric, made the announcement, while Ather Energy continues to face challenges with the uncertain FAME II policy affecting sales. Both companies are expanding their charging networks and retail footprints, indicating a growing demand for electric two-wheelers in India.