Ather Energy’s monthly pre-orders have crossed 50,000, racing ahead of its production capacity as the electric scooter maker accelerates its expansion plans. The company revealed the demand-supply gap in its latest earnings call, saying it is readying a new lower-priced scooter and raising fresh capital to support the next phase of growth.
Retail squeeze as inventory dries up
Ather said it receives more than 50,000 pre-orders a month, compared with around 30,000 units retailed monthly in the first quarter. Management estimates it could have sold another 13,000-15,000 units per month had supply been available. Dealer inventory has fallen from around 14 days to just three days, and existing stores are fulfilling only 50-60% of demand. Some dealers have stopped taking fresh bookings as waiting periods stretch beyond two months.
Capacity push at Hosur and AURIC
Ather currently has annual capacity of around 4.2 lakh units, with its Hosur facility producing about 35,000 scooters a month. The first phase of its AURIC facility should take total annual capacity to 9.2 lakh units later this calendar year. The company is also evaluating a second phase that could add another 5 lakh units, taking the total to 14.2 lakh units, though investments have not started and clarity is expected in the next one or two quarters.
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Rs 2,500 crore to fuel the next phase
To fund the expansion, Ather recently completed a Rs 1,300 crore qualified institutional placement and is seeking shareholder approval for another Rs 1,200 crore preference issue. The combined Rs 2,500 crore will accelerate capacity at Ather and its suppliers, support new launches and strengthen the balance sheet amid commodity and supply pressures. The upcoming lower-priced EL scooter will be a key capacity driver, with plans to build around 60,000 EL units a month across Hosur and AURIC, targeting northern and middle India first.
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Beyond scooters
Ather expects at least 75% of EL buyers to opt for AtherStack Pro despite the lower price point, and sees the EL competing more with the Rizta than the 450. Non-vehicle revenue now accounts for 14% of operating revenue, with AtherStack Pro the largest contributor. Service revenue, currently just 2-3% of revenue, could grow toward the 10-12% that established two-wheeler companies generate, management said. With demand running ahead of production, the challenge is no longer generating demand but converting it into deliveries.