Indias transition to electric scooters hinges on continued subsidies for a few more years, emphasized Tarun Mehta, the CEO of Ather Energy, during a conversation with Reuters on Saturday. Mehta underscored the importance of incentives like subsidies to facilitate the shift from conventional motorbikes to cleaner alternatives, crucial for Indias objective of electrifying 70 percent of its two-wheeler fleet by 2030.In an interview, Mehta acknowledged the reduced reliance on subsidies but also highlighted setbacks caused by a years worth of stunted growth, attributed to the governments decision in May to slash cash incentives for e-scooters drastically. Previously at 40 percent, these incentives were brought down to a maximum of 15 percent of the purchase price before tax.The e-scooter market in India, though nascent, is steadily expanding, constituting 5 percent of total two-wheeler sales in the fiscal year 2023-2024. Ather Energy, a trailblazer with its 450 series of e-scooters introduced in 2018, has faced stiff competition from larger players like Ola Electric and TVS Motor, whove leveraged discounts to drive sales growth.Ather, supported by Hero MotoCorp as its primary investor, unveiled its latest offering, the Rizta e-scooter priced at Rs. 109,999, on Saturday. Positioned as family-friendly, the Rizta boasts a spacious seat and enhanced storage compared to competitors. Mehta expressed optimism that these features would appeal to a broader customer base in Indias densely populated northern and western regions, thus bolstering sales figures.While Ather remains in the red financially, Mehta stressed a focus on revenue growth, anticipating improved margins with higher sales volumes. Although specifics were not disclosed, Mehta hinted at positive trends at the unit level, expressing hope that the Rizta model would play a pivotal role in the companys journey towards profitability.
