Ather Energy Launched New Base Variant Ather 450S

As subsidies in several states run dry and competition heats up, manufacturers are introducing affordable new variants to enhance sales. While premium electric scooters like Ather 450X continue to experience strong sales, the growth of electric two-wheelers appears to be stagnating, with negative MoM growth in April 2023. 

To stimulate sales, OEMs such as Ola and Hero MotoCorp are releasing more budget-friendly models, while upcoming electric two-wheelers from brands like Simple One, Honda, and Gogoro pose a potential threat.

Considering these factors, Ather's decision to introduce a new, affordable variant appears to be well-timed. The upcoming Ather 450S base variant is expected to compromise on some of the advanced features of the existing 450X Pro Pack variant to keep costs low. 

However, for those on a tight budget, many of these features may not be necessary, such as the full-colour 7-inch TFT touchscreen display, which Ather has already replaced with a grayscale unit on the standard 450X. There may be other features that could be eliminated as well.

Features like 4G connectivity, access to music and calls, guide-me-home light, hill assist, and park assist are desirable but not necessary. These features have already been removed from the standard 450X variant, and the upcoming 450S variant may do away with even more features to make it more affordable. 

Along with the missing features and tech, the new Ather 450S base variant is expected to come with a tubular frame instead of the aluminium space frame of the current 450X. It will also have a smaller battery pack and a less powerful motor. These cost-cutting measures will enable Ather to offer the new 450S base variant at an aggressive price point. 

The Ather 450X base variant is priced at Rs 98,079 (ex-showroom, Delhi), while the bestselling ICE scooter, Honda Activa, starts at Rs 75,347. Clearly, those on a tight budget would prefer the Activa over the more expensive Ather. To compete with the bestselling ICE scooters, OEMs need to introduce more affordable variants, which can match their pricing. Along with removing unnecessary features, they can also consider using lower-capacity battery packs, which will reduce the range but make the pricing more attractive to buyers.

Furthermore, the electric vehicle charging infrastructure is rapidly expanding throughout the country. With the availability of charging stations in the neighbourhood, range anxiety and the fear of getting stranded will be alleviated.

It is speculated that the upcoming Ather 450S variant will be priced below Rs 1.5 lakh, which is significantly lower than the existing 450X and 450X Pro Pack variants, priced at Rs 1,71,879. Ather is eligible for a central subsidy of Rs 55,500 under FAME II, and in Delhi, Ather scooters are eligible for a state subsidy of Rs 18,300. 

Assuming a price of Rs 1.5 lakh for the new 450S variant, the effective ex-showroom price in Delhi would be around Rs 76,000, which is almost on par with the Activa. Other charges such as insurance, road tax, and registration will also apply.