Ather Energy to Launch Insurance Subsidiary, Plans to Sell EV Policies

Ather Energy’s board has approved the formation of a wholly owned subsidiary that will operate as a corporate insurance agent and distribute motor insurance policies, the electric two-wheeler maker said on Friday.

The new unit will partner with multiple insurers to offer and service policies, but will need regulatory approvals from the Registrar of Companies and the Insurance Regulatory and Development Authority of India (IRDAI) before commencing operations.

Ather also plans to invest up to ₹8 crore initially to seed the business, with additional capital to be infused later depending on the scale of operations, an Inc42 report stated.

The Strategy

The company said the move is designed to diversify revenue and create a predictable, recurring income stream by cross-selling insurance to its existing customer base.

Bringing distribution in-house will, Ather said, help streamline renewals, boost insurance attachment rates and enable the development of EV-specific insurance products tailored to real-world usage. “We have always believed that a good ownership experience goes beyond the vehicle itself,” Ravneet Singh Phokela, Ather’s chief business officer, said, adding that closer integration with the Ather ecosystem would make insurance simpler and more transparent for customers and retail partners.

Market Response

Ather’s stock reacted positively to the announcement, rising about 3.8% to trade near ₹687.60. The move into insurance marks the latest step in Ather’s broader strategy to build an integrated ownership ecosystem around its scooters, covering vehicles, charging infrastructure, servicing, accessories, warranty products and software, while also monetising after-sales interactions.

The company cited recent operational momentum to justify the push. On a standalone basis, Ather’s revenue from operations rose about 54% year on year to ₹898.9 crore in Q2 FY26, while losses narrowed to around ₹154.1 crore for the quarter. Ather also said its share of India’s electric two-wheeler market increased to 17.4% from 12.1% a year earlier. As of September 30, 2025, the company operated one of the country’s largest fast-charging networks, with about 4,322 fast and neighbourhood chargers globally, including roughly 4,282 in India and 40 in neighbouring markets.

Ather will now seek the necessary statutory and regulatory approvals before formally launching the insurance business. If successful, the initiative could reduce friction for customers at the time of purchase and renewal, increase lifetime revenue per vehicle and create a platform for offering additional EV-focused financial and ownership services in the future.