Ather Energy’s Strategic Ascent: Surpassing Ola Electric and Achieving Production Milestones

October had special significance for Ather for two reasons. First, it overtook Ola Electric on a market-cap basis, and second, it hit a significant milestone in rolling out its 500,000th electric scooter. These two developments are illustrative of the evolution of India’s electric two-wheeler market and provide good visibility into Ather’s growth, sales, and competitive position.

Market Capitalisation Shift

On 6 October 2025, Ather Energy’s stock rose by 4.78%, bringing its market value to ₹23,601 crore on the Bombay Stock Exchange. At the same time, Ola Electric’s value dropped by 2.54% to ₹23,200 crore. This was the first time Ather’s market value was higher than Ola’s.

Investors seem more confident in Ather’s growth and operations, while Ola faces issues with sales and service.

Sales numbers show clear differences between the two companies’ performance. From July to September 2025, Ather Energy sold 52,597 scooters, putting it in second place. TVS led with 69,195 units, and Bajaj sold 51,120. In September, Ather overtook Ola for the first time in monthly sales, delivering 18,109 scooters compared with Ola’s 13,371 unit sales.

While TVS and Bajaj still lead in volume, Ather’s sales growth points to changing views in the market and more interest from investors.

Production Milestone

Ather Energy recently built its 500,000th electric scooter since starting in 2013 and launching sales in 2018. The milestone scooter was a Rizta, a family model introduced in 2024, which now makes up more than a third of all production.

This milestone shows that Ather Energy can scale up production well. Ather has two facilities in Hosur, Tamil Nadu, with a combined annual capacity of 420,000 scooters, including batteries. Ather is building a new plant, called Factory 3.0, in Bidkin, Maharashtra, in two phases with automated systems and new technology. When finished, Ather will be able to produce 1.42 million scooters each year.

Strategic Growth and Expansion

Ather Energy plans to grow its retail network to 700 Experience Centres (ECs) by March 2026 to make its scooters more accessible and improve after-sales support. The company is also moving into smaller cities in northern and central India to reach more customers.

Ather Energy puts technology at the heart of its strategy. Features like mapping potholes and road conditions make riding better and help Ather stand out from competitors. These updates, along with steady production and sales growth, show the company’s growing maturity.

Ola Electric’s Position

Ola Electric started in 2017 and began deliveries from its Krishnagiri, Tamil Nadu, plant in December 2021. At first, it held over half of India’s EV market. But in 2025, its quarterly sales dropped by 45% compared to the previous year, showing problems with service and scaling up operations.

In 2025, Ola Electric grew its store network from 800 to 4,000 locations and launched a new electric motorcycle. Since September, it has also started using its own battery cells to boost production. Still, these changes have not yet led to higher short-term sales, and Ola is working to keep up with shifting market demands.

Supply Chain and Policy Factors

Ather Energy postponed ₹26.25 crore in incentives from the Prime Minister Electric Drive (PM E-DRIVE) scheme because of supply chain issues. China’s export limits on certain rare earth magnets disrupted traction motor supplies, affecting production for about 52,500 scooters. This shows how electric vehicle manufacturing can be affected by global supply and policy changes.

Investor and Market Insights

For traders and investors, shifts in market value and milestones in production provide insight into Ather Energy’s position in the marketplace and its operations. Producing 500,000 scooters is evidence of Ather Energy’s ability to scale up, while the expansion of its retail network also gives evidence of its ability to grow further.

Looking at sales trends, production efficiency, and how well companies reach different regions helps explain the competition in India’s electric vehicle market. Ather Energy’s results show that a clear product focus, the ability to scale, and using technology can shape how investors and the market see a company.

Context within the EV Market

Comparing Ather Energy and Ola Electric highlights bigger trends in the industry. TVS and Bajaj still lead in sales, but companies like Ather are using focused products and expanding into new regions to build their market share. The industry is changing quickly as companies grow their factories, open more stores, and add new technology to meet rising demand.

Conclusion

Ather Energy passing Ola Electric in market value and making 500,000 scooters is a big step for India’s electric two-wheeler market. By focusing on the Rizta model, growing its retail network, and adding new technology, Ather shows a strategy that balances growth and standing out in the market. These changes give investors and traders a clearer view of how the industry is shifting and what trends to watch.

Sources

Mint
NDTV
Business Standard
Auto Car Pro
Inshorts
The New Indian Express
Ascendants
The Economic Times