IPO-bound Ather Energy has announced the expansion of its R&D and testing capabilities at its Product Testing & Validation Centre, The Juggernaut, in Begur, Bengaluru. This facility, spanning 38,692 sq. ft., is a crucial part of Ather’s R&D ecosystem, ensuring the quality, reliability, and performance of its scooters while accelerating product development, testing, and validation. In an exclusive conversation, Swapnil Jain, co-founder of Ather Energy shares insights on the company’s R&D investments, market expansion strategy, and future vision.
Can you share details about the investment for R&D its strategic importance?
Our R&D expenditure has consistently grown, from ₹100 (1,01) odd crore in Fiscal 2022 to over ₹230 (236.5) crore in Fiscal 2024. As of December 31, 2024, our R&D spend stood at ₹238.8crore, accounting for 15% of our revenue from operations. Additionally, 46% of our total workforce is dedicated to R&D. Additionally, 46% of our total workforce is dedicated to R&D. While the infrastructure is largely in place, the focus now is on improving efficiency, automation, and real-world correlation of test data. The facility allows us to compress long-term endurance testing—what would take a decade on the road—into just 15 days.
Ather has a strong presence in South India. How has the response been in the northern markets?
The response has been very positive. For instance, as per Vahaan data in Gujarat, our market share has grown from 5-7% in June to 22-23% currently, peaking at 25%. This growth has been achieved despite having a much smaller footprint than other OEMs. Our strategy is to ensure robust service infrastructure before launching sales in a new region. This ensures a seamless customer experience and sustainable dealer operations.
What impact does this new testing facility have on Ather’s product development cycle?
Ather Energy: The facility enables what we call “left-shifting” in product development—moving from testing entire vehicles to testing individual components. This modular approach allows for faster iterations, similar to how software development works. Engineers can independently test and refine specific parts like the suspension or chassis without waiting for a full vehicle build, significantly accelerating product improvements.
Ather is working on new product platforms. Can you share details on what’s in the pipeline?
We are developing two new platforms—EL for scooters and Zenith for motorcycles. The EL platform is in an advanced stage and will offer a cost-effective yet high-performance scooter line, integrating a new powertrain and chassis. The Zenith platform will introduce electric motorcycles in the 125cc to 300cc range. Additionally, we are developing a lithium-iron phosphate (LFP) battery platform to enhance affordability and compatibility with our existing products.
What are Ather’s efforts toward indigenous battery cell development?
We believe the industry should come together to standardize charging infrastructure. We have already demonstrated interoperability by Light Electric Combined Charging System (LECCS) which allow vehicles from other brands to charge on our network and vice versa. A common standard will benefit all OEMs and customers. Moreover, India needs to lead in setting EV standards rather than merely following global norms.
How is Ather addressing cost challenges post-FAME subsidy reduction?
Our focus is on rapid product development and cost optimization. With connected vehicles, we receive real-time field data, allowing us to fine-tune designs based on actual usage patterns. By continuously improving and removing overdesign, we manage to keep costs in check. While subsidies have tapered, vehicle prices haven’t risen drastically, thanks to industry-wide improvements in cost structures.
What is Ather’s stance on charging infrastructure interoperability?
We believe the industry should come together to standardize charging infrastructure. We have already demonstrated interoperability by allowing vehicles from other brands to charge on our network and vice versa. A common standard will benefit all OEMs and customers. Moreover, India needs to lead in setting EV standards rather than merely following global norms.
How do you see the EV industry evolving with legacy players entering the market?
The market is still in an experimental phase, with fluctuating market shares as companies test different strategies. While legacy players are catching up, we believe the industry will stabilize with multiple strong OEMs, much like the ICE segment. At Ather, we prioritize long-term stability over short-term market fluctuations, ensuring a robust ecosystem for customers.
With the IPO on the horizon, how do you expect the public markets to respond?
While I am no expert on public markets, our focus remains on profitability and product expansion. The key to long-term success is selling more vehicles and maintaining strong unit economics.
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