With segment-focused products and premium positioning, Ather is scaling smart — not cheap — as it heads for IPO.
28 Mar 2025 | 12707 Views | By Kiran Murali & Ketan Thakkar
As Ather Energy approaches its long-anticipated initial public offering, the company is sticking to its bold — and contrarian — strategy: it has no plans to compete on price. Instead, it is doubling down on what CEO Tarun Mehta calls a “mass premium” positioning backed by product engineering, software innovation, ...
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As Ather Energy approaches its long-anticipated initial public offering, the company is sticking to its bold — and contrarian — strategy: it has no plans to compete on price. Instead, it is doubling down on what CEO Tarun Mehta calls a “mass premium” positioning backed by product engineering, software innovation, and consumer experience.
In an increasingly price-sensitive EV market, Ather's refusal to chase volumes through discounts or sub-Rs-1 lakh scooters is drawing attention from both investors and industry observers. “Our products may have a 5–10% premium, but I think they very well justify the premium with additional features and greater value,” Mehta said in a recent conversation.
Not the Cheapest — and Proud of It
While competitors like Ola, TVS, and Bajaj have introduced aggressively priced models to drive volumes, Ather has resisted the temptation to play in the low-cost category. The company’s flagship 450 and family-oriented Rizta scooters maintain premium pricing, justified by their design, electronics, and proprietary software features.
“Ather is the only large brand that has not given in to the temptation of sub-1 lakh rupee products,” Mehta said. “Because the whole industry knows that [coming up with ideas on] making margins in sub-1 lakh rupee is an academic exercise.”
The strategy reflects Ather’s belief that EV buyers — particularly in urban and aspirational India — are looking to upgrade, not compromise.
Becoming the ‘Apple of Scooters’
Ather’s mass premium philosophy is grounded in more than just pricing — it is about experience. Mehta directly compared Ather’s ambitions in auto to those of Apple in the consumer tech space, with a focus on owning the entire stack: product, software, and customer interface.
“You want to be the Apple of the scooters,” Mehta remarked during a wide-ranging discussion, “so we have to go mass market Apple.” The company’s refusal to enter the budget segment isn’t just about margins. It’s about brand integrity — and long-term differentiation.
Segment-by-Segment Playbook
Rather than attempting to build a single scooter that caters to all customer types, Ather is building a portfolio aimed at winning individual segments. The Ather 450 has established its presence in the performance category, while the Rizta targets family buyers seeking a higher-quality urban commuter. However, Mehta made it clear that the company is not content with its current lineup.
“We want to basically win segment by segment instead of saying – 'Here is this one product that will do 10 different things...we don't think that's how market dynamics will eventually work. There are two or three more products we're considering.”
In what could be a significant step toward becoming a full-range EV OEM, Ather is developing two new platforms: EL - to broaden its electric scooter lineup, and Zenith – to mark its entry into the electric motorcycle space.
The EL platform, which is likely to be rolled out this year, will be a cost-effective and versatile platform scooter with a new powertrain, electronics, and chassis. On the other hand, the Zenith platform is being designed for electric motorcycles targeting the 125 cc to 300 cc segments.
The newer scooter models will cater to different rider profiles — not just family buyers. Mehta emphasized the need for variety in the premium scooter space: “Will we build more products in the scooter space? Yes, we will. Will all of them be family scooters? I'm not going to have four family scooters: How will I differentiate them?” He also highlighted the evolving nature of consumer expectations and vehicle use cases: “I think the scooter market is starting to see a lot of fragmentation and unique tastes emerging... Like what happened to motorcycles 20 years ago.”
While exact technical specifications and launch timelines remain undisclosed, the new platforms are part of Ather’s strategy to expand in terms of product, segment, and performance, offering consumers an upgrade path within the brand. “We want to become synonymous with the upgrade mindset for scooters in the short term. Long-term, be even more.”
Engineering-Backed Pricing
What sets Ather apart from many of its rivals is its commitment to engineering-led value creation. Mehta is the first to admit that Ather isn’t coasting on brand cachet — not yet. Instead, the brand’s premium pricing is justified through hardware design, intelligent software, and long-term ownership experience.
“Our premium is not coming because Ather's brand name speaks for itself. We are not there yet,” he said. “Our premium is due to the quality of the product and the value derived from its features.”
Wooing Investors
As Ather prepares for its IPO, this strategy — although unconventional — could resonate with investors seeking a differentiated electric vehicle (EV) play. While other startups have relied heavily on subsidies, discounts, or rapid scaling through lower price points, Ather’s value proposition rests on margin resilience, customer loyalty, and product integrity.
It’s a longer game — but one that could pay off as India’s EV buyers grow more sophisticated and the market shifts from early adopters to mass upgraders.
“It's a fantastic market. People are upgrading. Scooters are an easy space to upgrade... We will focus on that,” Mehta said.
With the IPO expected in the coming weeks, Mehta offered a measured take on market conditions. While EV stocks globally have faced volatility, he signaled that Ather isn’t trying to time the market — it’s focused on readiness.
As the company prepares for its public listing, Mehta acknowledged that Ather’s IPO valuation has been adjusted in response to market conditions. When asked about the reduced valuation, he pointed bluntly to broader volatility.
He added that pricing will be closely aligned with mid-cap benchmarks and sentiment at the time of launch. “We will price ourselves in line with current market levels, particularly for mid-cap companies. Pricing is not done in isolation.”
Still, Mehta is not overly concerned with perfect timing. Emphasizing a pragmatic view of market cycles, he said: “you can never time the market... What I have come to realize is that it is best not to think too much about it.”