You are here: Home » Companies » Q&A
Business Standard

CEO Tarun Mehta on how Ather achieved $100-mn revenue run rate in a year

How did Ather Energy achieve $100-million annual run rate in less than a year? Its CEO Tarun Mehta discusses answer this and other questions in this exclusive interview with Surajeet Das Gupta

Topics
Ather Energy | Electric Vehicles | Electric vehicles in India

Surajeet Das Gupta  |  New Delhi 

How does CEO Tarun Mehta see the EV two-wheeler space evolving in the coming months, and how is his company scaling up capacity to benefit from it? How did achieve $100-million annual run rate in less than a year to become possibly India's biggest EV two-wheeler maker by revenue? How close is the company to breaking even? In this exclusive interview Mehta discusses all these and more with Business Standard's Surajeet Das Gupta. Highlights of the Q&A:

You being one of the first to be in the two-wheeler EV space, where do you see this segment going forward?


· Initial goal: Sway a Honda Activa buyer towards EV
· EV prices are comparable to petrol alternatives
· EV space to grow at 14-15% m-o-m for the next three to five years
· Majority of scooters in India are likely to be electric in the next four years

What are your expansion plans?

· growing over 20% m-o-m since Nov 2020
· Suppliers asked to quadruple their capacities
· Expanding on new production line and ramping up capacities across the board
· Presently 23 experience centres in India
· Estimated 120 to 150 retail outlets by end of 2022

How many cities do you plan to have presence in?

· Ather Energy is present in 24 cities in India
· Estimated to have presence in more than 100 cities by next Diwali
· Around 140 outlets by the same time
· Aim: Scale up monthly production to 25,000 to 30,000 units

For this kind of ramp up, you will require more investment. While all kinds of startups have got some fancy valuations, the valuation of two-wheelers and asset-rich they have not really gone up. How are you addressing this?

· Product businesses require time and effort to set up
· Ather is the first hardware startup in India to cross the $100 million run rate in a year
· Ather is the largest EV two-wheeler company in India by revenue

With this kind of pace when do you think you can break even?

· In the next couple of years, Ather expects to reach positive EBITDA
· This doesn’t account for the expansion triggered by new product lines in international markets

When you say $100 million run rate, what are you expecting in terms of actual revenues?

· Ather retail revenue for Oct 2021 – Rs 64-crore
· Retail revenue to cross Rs 100-crore in the next 3/4 months

Ola have, in many ways, attempted to disrupt the two-wheeler market and looking at a capacity of 10 million, which is almost half of entire two-wheeler market in India. How do you see that as a competition for Ather?

· Ola’s announcement helped EV sales to increase by 60% in last 2/3 months
· Response more from Tier-II and Tier-III cities
· Announcements help people to be aware and excited about electric mobility
· Competition improves supply chain and business viability
Competition brings down prices and production timelines

MONTHLY STAR

Business Standard Digital

Business Standard Digital Monthly Subscription
199.00  
subscribe
Complete access to the premium product
Convenient - Pay as you go
Pay using Amex/Master/VISA Credit Cards and VISA Debit Cards Only
Auto renewed (subject to your card issuer's permission)
Cancel any time in the future
Requires personal information

What you get?

ON BUSINESS STANDARD DIGITAL

  • Unlimited access to all the content on any device through browser or app.
  • Exclusive content, features, opinions and comment – hand-picked by our editors, just for you.
  • Pick 5 of your favourite companies. Get a daily email with all the news updates on them.
  • Track the industry of your choice with a daily newsletter specific to that industry.
  • Stay on top of your investments. Track stock prices in your portfolio.
  • 18 years of archival data.

NOTE :

  • The product is a monthly auto renewal product.
  • Cancellation Policy: You can cancel any time in the future without assigning any reasons, but 48 hours prior to your card being charged for renewal. We do not offer any refunds.
  • To cancel, communicate from your registered email id and send the email with the cancellation request to assist@bsmail.in. Include your contact number for speedy action. Requests mailed to any other ID will not be acknowledged or actioned upon.

SMART ANNUAL

Business Standard Digital
Subscribe Now and get 12 months Free

Business Standard Premium Digital - 12 Months + 12 Months Free
1799.00
subscribe
Subscribe for 12 months and get 12 months free.
Single Seamless Sign-up to Business Standard Digital
Convenient - Once a year payment
Pay using an instrument of your choice -all Credit and Debit Cards, Net Banking, Payment Wallets, and UPI
Exclusive Invite to select Business Standard events

What you get

ON BUSINESS STANDARD DIGITAL

  • Unlimited access to all content on any device through browser or app.
  • Exclusive content, features, opinions and comment - hand-picked by our editors, just for you.
  • Pick 5 of your favourite companies. Get a daily email with all the news updates on them.
  • Track the industry of your choice with a daily newsletter specific to that industry.
  • Stay on top of your investments. Track stock prices in your portfolio.

NOTE :

  • The monthly duration product is an auto renewal based product. Once subscribed, subject to your card issuer's permission we will charge your card/ payment instrument each month automatically and renew your subscription.
  • In the Annual duration product we offer both an auto renewal based product and a non auto renewal based product.
  • We do not Refund.
  • No Questions asked Cancellation Policy.
  • You can cancel future renewals anytime including immediately upon subscribing but 48 hours before your next renewal date.
  • Subject to the above, self cancel by visiting the "Manage My Account“ section after signing in OR Send an email request to assist@bsmail.in from your registered email address and by quoting your mobile number.

Dear Reader,


Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

First Published: Mon, November 15 2021. 08:30 IST
RECOMMENDED FOR YOU
.