Ather Energy Targets Nationwide Expansion with Launch of New Family Scooter
Ather Energy is on the brink of launching a new family scooter, marking a significant shift in its product lineup and targeting a rapid growth phase across India. Ravneet Phokela, Chief Business Officer at Ather, shares insights into how the introduction of the Rizta scooter is poised to capture a broader customer base and expand the company’s presence beyond the southern regions to the northern and western parts of the country.
Targeting a Larger Market Segment
Until now, Ather’s focus has been on the performance scooter segment, a niche market comprising roughly 15% of the total market share. This strategy is about to change with Rizta, which aims at the vastly larger family scooter segment. With a whopping 95% market share in the northern and western regions, this move is calculated to tap into a more significant portion of the market, optimizing the product for its intended consumer base without diluting the brand’s focus.
Evolution of Ather’s Product Line
Ather’s journey began with a performance-oriented scooter, the 450, setting a benchmark in the electric mobility space as a high-quality, non-compromising electric vehicle (EV) option. This was a strategic move to differentiate Ather from the low-cost, low-quality electric scooters flooding the market, primarily from Chinese imports. As the electric scooter market matures, Ather’s pivot towards the family scooter segment with Rizta reflects a focused approach to product development, targeting a broader market share.
Building on First Mover Advantage
Having been a pioneer in the electric scooter market, Ather understands that a first-mover advantage is not a guarantee of market dominance. Success depends on the relevance of the segments a company operates within. Rizta represents Ather’s ambition to play a significant role in a larger market segment, combining quality, reliability, and performance with a product designed for the family scooter market.
The Impact of Electric Scooters on the 2W Market
The electric scooter wave is reshaping the two-wheeler market, influencing the decline in entry-level motorcycle sales as consumers shift towards electric scooters for basic commuting needs. This shift is supported by the increasing availability of credible electric options, offering better value for money and making electric scooters a natural choice for new buyers.
Future Directions and Cost Management
While Ather is exploring the development of electric motorcycles, the focus remains on consolidating its position in the scooter market. The company is also mindful of its domestic market priorities, considering the vast potential compared to international markets. Efficient cost management has emerged as a key strength for Ather, especially in light of reduced government subsidies. The company’s emphasis on engineering and value engineering has enabled it to build an advantageous cost structure, preparing it for future growth and product development.
Conclusion: A Catalyst for Electric Mobility
As Ather Energy prepares to introduce Rizta to the Indian market, it stands at the forefront of the electric mobility revolution. By targeting the family scooter segment, Ather aims to catalyze the transition to electric vehicles across India, leveraging its strengths in quality, reliability, and efficient cost management to meet the diverse needs of its expanding customer base.
Content Credit: ET Auto