Daijiworld Media Network – Bengaluru

Bengaluru, Apr 27: Electric two-wheeler maker Ather Energy Ltd, which is preparing for an IPO, plans to strengthen its distribution network in South India and expand its presence across the western, northern, and eastern regions.

According to Vahan portal data from the Ministry of Road Transport and Highways (MoRTH), Ather is the market leader across South India, barring Telangana. The firm sold 46,230 units between October 2024 and March 2025, capturing a 22% market share during the six months.

A report by CRISIL highlighted that the southern region contributed to about 33% of India’s total e2w sales, with 48% of Ather’s dealerships located there, driving 68% of its FY24 sales.

In the nine months of FY25, Ather sold 65,914 of its total 1,07,983 units in the South zone, while the West, North, East, and Central regions contributed 16,812, 10,471, 7,230, and 6,338 units respectively.

With 266 dealerships compared to the 700-800 outlets run by competitors, Ather sees significant headroom for growth.

“This affords our company a variety of potential markets to expand our distribution network,” said Tarun Mehta, Executive Director and CEO of Ather Energy, in an interview. “With the launch of the Ather Rizta, we have entered the convenience scooter segment, enabling us to target a broader customer base.”

He added that Ather plans to collaborate with third-party retailers to boost its network of experience and service centres, particularly in underpenetrated areas.

An Axis Capital report noted that Ather’s revenue from operations grew 329% between FY22 and FY24 and rose another 28% in 9MFY25. The company also managed to cut its 9MFY25 losses by nearly 35% year-on-year to Rs 577 cr from Rs 776 cr.

Vehicle sales jumped 45% to 1,07,983 units in 9MFY25 compared to 74,333 units a year ago, while its adjusted gross margins more than doubled to 19% from 9%, indicating improving unit economics.