The competition for electric scooters is heating up as Ather develops additional variations to compete with Ola.
- ByStartupStory | February 5, 2022
Ather Energy, a Bengaluru-based electric two-wheeler maker, plans to compete with Ola Electric by increasing the capacity of its new Hosur factory from 110,000 to 500,000 units per year by the end of next year. This will invest Rs 650 crore in the new manufacturing site, and plans are in the process to collect funds from private equity players as well as other investors to support its future development later this year.
According to Mehta, India’s electric scooter industry would reach five to six million units over the next five years. Ather’s bravado follows Ola Electric’s bold move to spend Rs 2,400 crore in a factory that would produce 10 million two-wheelers per year by 2022.
But on the other hand, OLA acquired the scooter’s technology by purchasing Etergo, a company located in the Netherlands that was on the verge of bankruptcy. However, Ola officials claim that the product has been significantly redesigned for India, with just the design aspects remaining.
The new FAME (Faster Adoption and Manufacturing of Hybrid Electric Vehicles) program, which was unveiled a few weeks ago, has essentially closed the cost gap between ICE and electric scooters by boosting the battery subsidy by Rs 5,000 per kWh, according to Ather (it was Rs 10,000 per kWh). As an outcome, the subsidies for Ather’s 3-KwH battery-powered scooters has increased by Rs 15,000!
Follow Startup Story
Related Posts
