Two IIT graduates set out to solve India's battery problems in 2013. They ended up building the country's premier EV brand.
07 Nov 2024 | 9107 Views | By Narasimhan TE
A decade ago, in the bustling tech hub of Bengaluru, a revolution in electric mobility was quietly taking shape, unbeknownst to the world at large and, perhaps, even to the key protagonists. Tarun Mehta and Swapnil Jain, two engineering graduates from IIT Madras, founded Ather Energy in 2013.
Their ...
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A decade ago, in the bustling tech hub of Bengaluru, a revolution in electric mobility was quietly taking shape, unbeknownst to the world at large and, perhaps, even to the key protagonists. Tarun Mehta and Swapnil Jain, two engineering graduates from IIT Madras, founded Ather Energy in 2013.
Their initial vision, however, wasn't immediately focused on electric scooters. The duo began with an interest in energy solutions, particularly batteries for electric vehicles, inspired by trends they observed in China. But as they delved deeper into market research and customer insights, their focus evolved. They identified a gap in the Indian market for high-quality, high-performance electric two-wheelers, and Ather's journey as an innovative EV manufacturer began in earnest.
This evolution in vision set the stage for Ather's intensive focus on research and development. In a modest Whitefield facility, the company's first R&D efforts centred on developing a robust battery pack, an efficient powertrain, and innovative vehicle architecture. These early years were marked by intense experimentation and learning, laying the foundation for what would become a powerhouse of EV innovation.
The R&D Secret Sauce: Innovation, Adaptation, Orientation
Ather's commitment to R&D bore its first fruit in 2018 with the launch of the Ather 450. This wasn't just another electric scooter; it was a significant departure from what was available, showcasing the company's prowess and innovation in the areas of design, packaging, performance and technology. The Ather 450 introduced several firsts to the Indian E2W market: a touchscreen dashboard, internet connectivity via a 3G SIM, and cloud integration. Perhaps most importantly, it was the first E2W to offer a top speed of 80 kmph, comparable to ICE scooters, setting a new benchmark for performance in the electric segment.
Having set the benchmark with the 450, the company's R&D team intensified their efforts. However, their approach to scaling was far from conventional. Rather than rushing to capture market share, Ather adopted a measured strategy that prioritised quality and brand building. This philosophy, championed by co-founder Tarun Mehta, stemmed from a deep understanding of the Indian two-wheeler market, where trust and reliability often trump low cost.
Ather's R&D efforts during this phase focused on refining their processes and establishing a solid foundation before expanding into the mainstream market. The company invested heavily in awareness and marketing, recognising the need to change perceptions about EVs, particularly in regions with pre-existing negative sentiments due to experiences with low-quality products.
Central to Ather's R&D strategy was a commitment to localisation. Mehta believed that India had a significant advantage in electric two-wheeler R&D, with a growing talent pool and a competitive market driving innovation. This focus on local expertise allowed for the development of products tailored to the specific needs of the Indian market. This very specific orientation of the R&D effort contributed to both innovation and cost optimisation.
Cost-effectiveness became a key consideration for R&D, but not in the conventional sense of achieving the lowest possible price. Instead, the company focused on delivering value for money, with an emphasis on quality and performance. This approach was reflected in the development of the Ather 450X, launched in January 2020. The 450X improved upon its predecessor with enhanced performance and range whilst retaining features like Bluetooth and cloud connectivity, showcasing Ather's ability to innovate while maintaining a focus on quality.
The following year marked a quantum leap in Ather's capabilities. The company moved its manufacturing to larger facilities in Hosur, Tamil Nadu. With its state-of-the-art equipment and larger team, the new facilities allowed for more sophisticated testing and development processes.
As Ather's ambitions grew, so did its investment in R&D. The company's financial commitment to innovation saw a dramatic increase, rising from Rs 101 crore in FY22 to Rs 192 crore in FY23. Variations of the 450X scooter benefited from this increased focus, allowing Ather to tailor the product to customer demand and feedback.
Ather's R&D ecosystem has continued to expand rapidly. By 2023, the company's R&D team had grown to over 700 professionals, spread across three facilities in Bengaluru. The IBC Knowledge Park facility, spanning 73,944 sq ft, became the hub for industrial design and engineering. The NS Palya facility, covering 20,300 sq ft, focused on battery and vehicle durability testing. A third facility in Begur, commissioned in January 2023, added another 38,692 sq ft dedicated to reliability, structural dynamics, and environmental testing. Mehta often highlights that this R&D team is currently the largest in the world for electric two-wheelers.
This expanded research infrastructure quickly bore fruit. In quick succession, Ather launched the 450S in August 2023, an entry-level model that demonstrated the company's ability to innovate across price points, followed by the high-performance Ather 450 Apex in January 2024, showcasing Ather's prowess in pushing the boundaries of E2W capabilities.
Adding Throttle
The company's commitment to R&D reached a new peak in FY2024, with an investment of Rs 237 crore, representing 13% of the company's total revenue. This substantial investment was reflected in Ather's expanding intellectual property portfolio. By August 2024, the company had 45 registered patents globally, with another 210 patent applications pending.
The launch of the Ather Rizta in April 2024 marks another milestone in the company's journey. As Ather's first convenience scooter, the Rizta demonstrated the company's ability to diversify its product line whilst maintaining its technological edge. It introduced features like WhatsApp notifications on the dashboard and voice commands through Alexa Skills integration, setting new standards for connectivity in E2Ws.
Looking to the future, Ather's R&D focus is evolving again. The company is now developing two new E2W platforms: a cost-effective scooter platform (the EL platform) and a motorcycle platform (the Zenith platform). These developments, along with ongoing research into LFP battery chemistry and rare-earth-free motors, signal Ather's ambition to not just participate in the EV revolution, but to lead it.
From its humble beginnings to its current status as an R&D powerhouse, Ather Energy's journey is a testament to the power of sustained investment in innovation. As India's EV market continues to grow, Ather stands poised to shape its future, driven by a decade-long commitment to pushing the boundaries of what's possible in electric mobility. With each passing year, Ather's R&D efforts continue to redefine the landscape of electric two-wheelers, promising a future where sustainable transportation is not just a possibility, but a reality for millions of Indians.