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Ather 450S Price Drop by ₹25k Will Eat Ola Electric Sales?

Ather Energy recently made significant changes to its product lineup. The company announced the discontinuation of the Ather 450 Plus model and slashed the prices of the Ather 450X, calling it the “largest overhaul” in their product offerings. This move aims to make their electric scooters more affordable and competitive.

Ather 450S: A Closer Look

The Ather 450S, available in two variants – the standard and the ‘pro pack’, has emerged as the flagship model for Ather Energy. The base variant of the 450S is now priced from Rs 1.09 lakh (ex-showroom, Bengaluru, including FAME-II subsidy). This price reduction of approximately Rs 10,000 to Rs 15,000 makes the Ather 450X a more attractive option for potential buyers.

Key Features and Specifications

The base variant and the ‘pro pack’ variant of the Ather 450S share similar features and specifications. The battery size remains the same as the previous models, offering a generous range for urban commuting.

  • The peak motor output of 6.4 kW (8.58 bhp)
  • 26 Nm of torque ensures a powerful and responsive ride experience
  • Ather 450S top speed of 90 kph
  • 0-40 kph acceleration in just 3.3 seconds.

The latest AtherStack5 updates have been incorporated into both variants of the 450S. These updates bring several enhancements, including smart charging algorithms, Smart eco mode, and Autohold, which improves stability on uphill rides. These features demonstrate Ather Energy’s commitment to providing a seamless and technologically advanced riding experience.

Ather’s Price Reduction Strategy

The decision to reduce prices and discontinue the Ather 450 Plus model responds to customer feedback and market demand. Ather CEO Tarun Mehta explained on Twitter that this move was a long-awaited request from the Ather community, who desired a more affordable option while maintaining the brand’s high-quality standards.

Mehta also emphasized that the Ather 450X continues to offer the best electric scooter package in the country, even with the reduced prices. The company aims to provide customers with a reliable and premium electric scooter that can compete with traditional petrol-powered scooters. Mehta believes that with each passing year, electric vehicles (EVs) will become more competitive in terms of both performance and price.

Production Expansion Plans

In addition to the pricing changes, Ather Energy has outlined plans to expand its production capacity. The company aims to increase its monthly production from an average of 15,000-16,000 units to 35,000 units1. To achieve this goal, Ather Energy is working on opening a new manufacturing plant in Hosur, which is expected to be operational by the end of the year. This expansion will enable Ather Energy to meet the growing demand for their electric scooters and establish their market presence.

FAME-II Subsidy Controversy

Ather Energy, along with other electric scooter companies, faced allegations of cutting corners to qualify for the Indian government’s Faster Adoption and Manufacturing of Electric Vehicles Phase II (FAME-II) subsidy. The government temporarily suspended the disbursal of FAME-II subsidies to several brands, including Ather Energy, due to the controversy surrounding the additional cost of chargers.

However, Ather Energy denied any stoppage of FAME-II subsidy, refuting the accusations against them. Mehta clarified that while initially selling the charger and scooter as a single unit, they later observed that most customers were purchasing multiple scooters and did not require an additional charger. Therefore, Ather Energy made the charger an optional accessory to give customers more flexibility and avoid unnecessary costs.

Advantages of Ather’s Charging Infrastructure

One of the reasons behind Ather Energy’s decision to offer chargers separately is the presence of their accessible fast-charging grid1. Ather Energy has invested in establishing a robust charging infrastructure, making it convenient for customers to charge their scooters when needed1. The chargers are also forward and backwards compatible, allowing customers to use the same charger even when upgrading their Ather scooter. This approach further enhances the cost-effectiveness and convenience of owning an Ather electric scooter.

Conclusion

Ather Energy’s recent announcement of discontinuing the Ather 450 Plus model and price reduction of the Ather 450X reflects the company’s commitment to customer feedback and market demands. By making their electric scooters more affordable and competitive, Ather Energy aims to attract a larger customer base and establish itself as a key player in the electric vehicle industry.

The Ather 450X, with its powerful performance, advanced features, and reduced prices, is poised to be a popular choice among urban commuters looking for an eco-friendly and reliable mode of transportation. With the expansion of its production capacity and the development of an extensive charging infrastructure, Ather Energy is well-positioned to meet the increasing demand for its electric scooters and contribute to the growth of the EV market in India.