Ather Energy to launch e-scooters in Sri Lanka
The Morning: Ather Energy, the electric two-wheeler manufacturer, is set to expand its international footprint by entering the Sri Lankan market in the upcoming quarter through a partnership with Evolution Auto.
This move is part of Ather’s broader global expansion strategy, which also includes its recent foray into Nepal announced in November 2023.
Ather Energy Chief Business Officer Ravneet Singh Phokela said: “We are thrilled to enter the Sri Lankan market. Sri Lanka has been a key component of our global expansion plans following our successful establishment in Nepal last year. With rising petrol vehicle ownership costs and the significant economic and environmental benefits of electric vehicles, we have observed a growing preference for EVs in Sri Lanka.”
Under the agreement, Evolution Auto (Pvt) Ltd. will serve as Ather Energy’s national distributor in Sri Lanka, overseeing sales and service operations.
Additionally, Ather will work on developing a network of fast-charging infrastructure throughout the country to facilitate the adoption of electric vehicles.
Evolution Auto is a joint venture involving Sensei Capital Partners, Atman Group, and Sino Lanka Private Limited.
In Nepal, Ather has already inaugurated its first experience centre and established three more centres along with seven fast-charging grids.
In India, Ather boasts a robust retail network with 208 experience centres and 1,973 fast-charging points under the Ather Grid.
The Indian electric two-wheeler (E2W) industry saw monthly sales cross the 100,000 mark in July. The top four OEMs in July were Ola Electric in the leading position, followed by TVS Motor, Bajaj Auto, and Ather Energy.
Hero MotoCorp-backed Ather Energy ranked fourth in the pecking order, with sales going up to 10,080 units in July from 6,192 units in June, achieving a 63% month-on-month growth and a 9% market share.
The announcement also comes at a time when Ather is preparing to go public by 2025. The firm has picked HSBC Holdings PLC, Nomura Holdings Inc. and JPMorgan Chase and Co. to help arrange its initial public offering.
OSL take:
The expanding economic activities in the country that in-turn has resulted in the overall expansion of Sri Lanka’s economy. This expansion has resulted in a growth in business/investment opportunities in Sri Lanka’s key economic sectors with the potential of further expansion in these opportunities in the coming months with the country’s target of becoming a hub in the South Asian region. The growing demand for power and energy in Sri Lanka amidst this development drive and expansion has paved the way for the emergence of new business/investment opportunities in the country’s power and energy industry. It is in such a backdrop that an e-scooter is being launched in Sri Lanka. The Sri Lankan government’s commitment to promote clean and sustainable power and energy sources have given a further impetus to the growing business/investment opportunities in Sri Lanka’s power and energy industry. Given the growth and business potential in Sri Lanka’s power and energy industry foreign businesses/investors could confidently explore the expanding direct and indirect business opportunities in the industry while also looking at forming collaborations with local businesses engaged in the industry with the aim of further expansion.