Bengaluru’s Ather Energy is optimistic about the impact of its recently launched Konarc electric scooter, projecting that it will contribute to over half of the company’s sales in the upcoming two years. The firm aims to establish Konarc as a pivotal product in its strategy to popularize electric scooters, focusing primarily on attracting consumers who currently favor internal combustion engine (ICE) scooters rather than competing head-to-head with existing electric vehicle (EV) manufacturers.
Available in five variants, with four priced similarly to the Rizta model, the Konarc is anticipated to become a significant player in the EV market. Manufacturing and availability are expected to increase following the festive season, according to the company. Notably, despite its lower starting price of Rs 99,999, the Konarc is projected to yield higher profit margins compared to the Rizta.
Strategic Goals for Market Penetration
Ravneet Phokela, Ather’s chief business officer, emphasized the role of Konarc in mainstreaming electric vehicles. “Our goal is to transition consumers from ICE vehicles to EVs,” he stated. “This isn’t merely about capturing market share from competitors; it’s fundamentally about attracting buyers from the traditional scooter market.”
Phokela noted that to effectively engage these potential customers, Ather must prioritize essential factors such as comfort, safety, and battery longevity before highlighting advanced features and technologies. The company has transitioned from using an aluminum chassis for its previous models to a more suitable tubular steel chassis for the Konarc, alongside a gearbox instead of a two-stage belt transmission. This new design approach is part of Ather’s broader strategy to enhance the user experience and operational efficiency.
Production and Market Expansion Plans
Currently, the Konarc is only available in select regions of North India, and Ather has not yet initiated bookings in central and southern parts of the country. However, the company anticipates this limitation will improve with the opening of a new manufacturing facility in December. Phokela indicated that it would take several months to scale up production post-commissioning.
As Ather works to improve its supply situation, it has temporarily halted showroom expansions. Presently, the company operates around 750 outlets, but plans to accelerate expansion after the festive season, aiming for approximately 2,000 stores within the next 18 to 24 months. Phokela stressed the importance of ensuring that dealer profitability remains a priority throughout this growth phase, as the company calibrates its expansion efforts accordingly.
