Ather Energy Sees Revenue Per Scooter Dip as Rizta Boosts Sales

Ather Energy, India’s third-largest electric two-wheeler (E2W) maker, witnessed a dip in its revenue per scooter in FY25 as the company’s strategy shifted towards its new family scooter, Rizta. Despite the decline, the affordable model significantly lifted sales volumes and strengthened the company’s market share.

Revenue Trends

According to its FY25 annual report, Ather’s revenue per scooter dropped 12% to ₹128,295 in FY25 compared with ₹143,333 in FY24 and ₹155,571 in FY23. The fall was largely driven by Rizta, which was priced lower than the Ather 450 line and quickly became the company’s bestselling model.

The Bengaluru-based company stated that although the Rizta line is on average ₹16,500 cheaper than the 450 series, its proprietary software platform, AtherStack, encouraged adoption of premium add-ons like the Propack. Overall, revenue from operations increased 29% year-on-year to ₹2,255 crore in FY25. Vehicle sales contributed 88% of this figure, while software and other non-vehicle revenue made up the rest.

Rizta’s Contribution to Sales

The Rizta accounted for 57% of Ather’s total sales of 155,394 units in FY25, with the 450 range contributing 43% or 66,525 units. In a joint note, founders Tarun Mehta and Swapnil Jain highlighted that the launch of Rizta, Ather’s first family scooter, played a pivotal role in boosting volumes and expanding market presence.

During Q4FY25, Ather emerged as the market leader in South India, capturing 22% of E2W sales across Tamil Nadu, Karnataka, Kerala, Goa, Andhra Pradesh, and Telangana. The company now aims to replicate this success in western and northern regions such as Gujarat, Maharashtra, and Delhi.

Manufacturing Expansion

Ather currently builds its scooters on the 450 platform but is actively working on new models under the EL and Zenith platforms, including motorcycles. On the production front, the company operates two assembly lines and three battery pack lines at its Hosur facility in Tamil Nadu, with annual capacities of 420,000 vehicles and 380,000 battery packs.

Looking ahead, Ather is developing a new facility, Factory 3.0, in Chhatrapati Sambhajinagar, Maharashtra. The first phase is expected to begin production in FY27, with expansion planned in phases. Once both stages are complete, Ather’s combined capacity across Hosur, and the new site will reach 1.42 million E2Ws annually.

Conclusion

While Ather Energy saw a fall in revenue per scooter in FY25, its strategic focus on the Rizta helped the company achieve higher sales and market leadership in southern states. With expansion into new regions and additional manufacturing capacity in the pipeline, Ather is positioning itself for long-term growth in India’s competitive EV market.

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