Ather Energy, a leading player in the electric vehicle (EV) industry, is making significant strides in its research and development (R&D) efforts with the expansion of its Product Testing & Validation Centre, known as The Juggernaut, in Begur, Bengaluru. This state-of-the-art facility, covering an impressive 38,692 square feet, plays a crucial role in enhancing the quality, reliability, and performance of Ather’s scooters while also accelerating the company’s product development, testing, and validation processes.
In a recent interview, Swapnil Jain, the co-founder of Ather Energy, shed light on the company’s commitment to R&D investments, market expansion strategies, and future vision. According to Jain, Ather’s R&D expenditure has shown a consistent increase, rising from around ₹100 crore in Fiscal 2022 to over ₹230 crore in Fiscal 2024. As of December 31, 2024, the company’s R&D spend had reached ₹238.8 crore, accounting for 15% of its revenue from operations. Notably, 46% of Ather’s total workforce is dedicated to R&D activities, highlighting the company’s strong focus on innovation and technological advancement.
While the infrastructure for R&D is well-established, Ather is now aiming to enhance efficiency, automation, and the real-world correlation of test data. The newly expanded testing facility at The Juggernaut allows the company to condense long-term endurance testing, which would typically take a decade on the road, into a mere 15 days. This accelerated testing process enables Ather to streamline product development and swiftly bring improvements to its scooters.
Ather Energy has garnered a positive response in the northern markets, with notable success in regions like Gujarat. Market data indicates that the company’s market share in Gujarat has surged from 5-7% in June to an impressive 22-23% currently, reaching a peak of 25%. Despite having a smaller footprint compared to other original equipment manufacturers (OEMs), Ather’s strategy of establishing robust service infrastructure before entering new markets has paid off, ensuring a seamless customer experience and sustainable dealer operations.
The new testing facility at The Juggernaut has revolutionized Ather’s product development cycle by enabling a modular approach that focuses on testing individual components rather than entire vehicles. This shift, known as “left-shifting” in product development, allows engineers to iterate faster and refine specific parts like suspension or chassis independently. The ability to test and improve components in isolation accelerates product enhancements, drawing parallels to the iterative process of software development.
Looking ahead, Ather Energy is actively working on developing two new platforms—EL for scooters and Zenith for motorcycles. The EL platform, which is in an advanced stage of development, aims to offer a cost-effective yet high-performance line of scooters by integrating a new powertrain and chassis. On the other hand, the Zenith platform will introduce electric motorcycles in the 125cc to 300cc range, expanding Ather’s product portfolio and catering to diverse customer needs.
In addition to new product platforms, Ather is also focusing on indigenous battery cell development and standardizing charging infrastructure across the EV industry. The company’s commitment to interoperability, as demonstrated by the Light Electric Combined Charging System (LECCS), highlights its dedication to creating a common standard that benefits all OEMs and customers. By leading the charge in setting EV standards, Ather aims to drive innovation and collaboration within the industry.
Despite challenges posed by the reduction of FAME subsidies, Ather remains dedicated to rapid product development and cost optimization. By leveraging real-time field data from connected vehicles, the company can refine designs based on actual usage patterns, leading to continuous improvements and cost-effective solutions. Ather’s ability to adapt to changing market conditions while maintaining competitive pricing underscores its resilience and commitment to delivering value to customers.
As the EV industry continues to evolve with legacy players entering the market, Ather remains focused on long-term stability and customer-centric innovation. While market shares may fluctuate as companies experiment with different strategies, Ather prioritizes building a robust ecosystem that ensures a sustainable future for EV adoption. By staying true to its core values and commitment to excellence, Ather aims to lead the charge in shaping the future of mobility in India.
With an IPO on the horizon, Ather Energy is poised for further growth and expansion in the public markets. While the exact response from investors remains uncertain, the company’s unwavering focus on profitability, product expansion, and technological innovation positions it as a formidable player in the EV industry. As Ather continues to push boundaries and redefine the standards of electric mobility, the public markets are likely to take notice of its vision and potential impact on the future of transportation.
