Ather Energy to deepen southern distribution, expand nationwide

Ather’s revenue from operations grew by 329% between FY22 and FY24, and by 28% in 9MFY25, as per Axis Capital report.
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IPO bound Ather Energy Ltd plans to deepen its electric two-wheeler distribution in South India and expand its network in the west, north and eastern regions.

The company leads the market in South India, except Telangana, as per data from the Vahan portal at the Ministry of Road Transport and Highways (MoRTH). The firm sold 46,230 units from October 2024 to March 2025, which is 22% of the e2w market share for the six months.

CRISIL in a report said, the southern zone alone accounted for about 33% of total e2w sales, while 48% of Ather’s experience centres, or dealership is located there, which contributed 68% sales in FY24.

South zone leads

The south zone accounted for 65,914 of the total 107,983 units sold for the 9MFY25 period while west, north, east and central zones contributed 16,812, 10,471, 7,230 and 6,338 units respectively.

The firm has 266 dealerships while its peers have 700-800, indicating significant headroom for growth.

Tarun Mehta, ED & CEO, Ather Energy told The Hindu, “This affords our company a variety of potential markets to expand our distribution network. With our entry into the convenience scooter segment through the launch of the Ather Rizta, we are able to address a larger portion of the scooter market.”

Third party retailers

“We aim to partner with third-party retailers to expand our network of experience and service centres, especially in less penetrated regions, to grow our customer base,” he added.

Ather’s revenue from operations grew by 329% between FY22 and FY24, and by 28% in 9MFY25, as per Axis Capital report.

The 9MFY25 losses narrowed by nearly 35% on a year-on-year basis to ₹577 crore from ₹776 crore. The firm will continue its focus on unit economics, as per the report.

Axis Capital said Ather’s vehicle sales grew 45% to 1,07,983 units in 9MFY25 from 74,333 in 9MFY24. The adjusted gross margins more than doubled to 19% in 9MFY25 from 9%.