2025 Climate Tech Companies to Watch: Ather Energy and its premium e-scooters

As the leading company in the electric car scooter only in the country, the successful expansion of ATHER can enhance India’s transformation away from fossil fuels, and helps to achieve the government’s goal of reducing air pollution, while building a market presence at the international level as well.

In the middle of 2024, ATHER RIZTA, a large family scooter with a large seat, larger storage space and fast charging, of which more than 100,000 units were sold within a year of its launch. To join competitors with good capital, such as First Electric, Atheer spends $ 105 million to build a third factory aimed at producing 500,000 vehicles with wheels annually by March 2027. It also expanded its shipping network to about 4000 shipping points and entered newer markets, including Nepal and Sri Lanka.

Caveats

In the past five years, the competition of electric cars has become fierce in India, driven by government and federal incentives. The car makers and motorcycles are racing to acquire the market, including the old car manufacturers, TVs Motor and Bajaj Auto. Since then, the two companies have exceeded ATHER, as they sold cheaper electronic motorcycles and expanded faster, by taking advantage of their sprawling presence in retail trade. Together, they acquired a group of 40 % of the electronic scooter market in India.

Meanwhile, the adoption of electric cars in India greater than what was expected. Indian electric cars sales reached 7.6% in 2024, which is much less than that of the government’s goal of 30% by 2030.

In order to have a real impact on the emissions of transportation in India, it must expand significantly. The company is working to double its presence in the field of retail to 700 stores and continue its expansion in the smaller cities. But political geography may intervene: the revenge embargo imposed by China on rare mineral exports led to a rare Important Earth in response to the customs definitions announced by the United States in April to a double effect; Atheer said in August that it had found it difficult to secure the magnet it needs for its engines.

The following steps

With the Indian government canceling the support that reduced the cost of purchasing an electric scooter, Atheer plans to launch cheaper options. In the middle of 2024, it began to switch to a newer battery chemistry called Lithium iron phosphate (LFP) that have lower environmental effects, require less expensive minerals, and should be almost 20 % cheaper than other batteries packages.

The company is not profitable, but its total profits for each vehicle is improving. It seems that the momentum is increasing. In May, Atheer announced that its annual sales until March 2025 increased by 42% compared to the previous year. Now, the company is betting that investing more products will help it take the initiative in the two -wheel bike revolution in India.