Bengaluru-based electric two-wheeler manufacturer Ather Energy has taken a major step beyond vehicle manufacturing by entering the auto insurance segment. The company has announced the formation of a wholly owned subsidiary that will operate as a corporate insurance agent, marking Ather’s formal foray into insurance distribution in India.
Known as one of the strongest rivals to Ola Electric, Ather Energy’s latest move signals its intent to build a deeper, end-to-end ecosystem around electric vehicle ownership. The new subsidiary will focus on offering motor insurance products for Ather’s electric scooters by partnering with multiple insurance providers, subject to regulatory approvals.
Strengthening the Arther EV Ownership Experience
The entry into auto insurance aligns with Ather Energy’s broader vision of simplifying the electric vehicle ownership journey. In India, vehicle buyers often face confusion while selecting insurance plans, understanding coverage, and managing renewals. By offering insurance solutions directly through its own subsidiary, Ather aims to make this process more seamless and transparent for its customers.
Instead of treating insurance as a separate, post-purchase activity, Ather plans to integrate it into the overall buying and ownership experience. This could allow customers to choose suitable insurance plans at the time of purchasing a scooter or during renewals, without dealing with multiple intermediaries.
Focus on EV-Specific Insurance Products
One of the key motivations behind this move is the growing need for insurance products tailored specifically for electric vehicles. Traditional motor insurance policies are largely designed for internal combustion engine vehicles and may not fully address EV-specific components such as battery systems, software-related issues, and charging infrastructure risks.
Through its insurance subsidiary, Ather Energy aims to work closely with insurance partners to design products that better reflect the real usage patterns and risk profiles of electric two-wheelers. This approach could help ensure more relevant coverage and potentially faster claims experiences for EV owners.
Investment and Regulatory Path
Ather Energy has approved an initial investment of around ₹8 crore for setting up the insurance distribution subsidiary. Additional capital may be infused as the business scales. However, the subsidiary will commence operations only after receiving approvals from the Registrar of Companies and the Insurance Regulatory and Development Authority of India.
The subsidiary will operate strictly as an insurance distributor and not as an insurer, meaning it will facilitate the sale of policies rather than underwrite risk itself.
Business Impact and Revenue Potential
From a business standpoint, the insurance venture offers Ather a new recurring revenue stream without significantly increasing customer acquisition costs. Since insurance is a mandatory requirement for vehicle owners, the company can leverage its existing customer base to drive adoption of these services.
This move also reflects a larger trend among EV and mobility companies in India, which are increasingly expanding into adjacent services such as financing, charging solutions, subscriptions, and now insurance, to improve unit economics and customer stickiness.
What It Means for Indian EV Buyers
For Ather customers, this development could translate into greater convenience and better-aligned insurance options. Having access to EV-focused insurance through the brand itself may reduce friction during purchases and renewals, while also improving clarity around coverage.
As electric mobility continues to gain traction across India, such ecosystem-led approaches are expected to play a crucial role in accelerating adoption.
Looking Ahead
While Ather Energy has not announced a specific launch timeline for the insurance subsidiary, the move positions the company as more than just a scooter manufacturer. By expanding into insurance, Ather is reinforcing its ambition to become a full-stack electric mobility platform, focused on long-term customer value rather than just vehicle sales.
In an increasingly competitive electric two-wheeler market, this strategic diversification could help Ather strengthen its relationship with customers and differentiate itself in the rapidly evolving EV landscape.