The EV maker aims to streamline insurance offerings, enhance customer experience, and deepen its end-to-end electric mobility ecosystem.
Ather Energy Makes Strategic Entry into Insurance
Ather Energy, a listed electric two-wheeler company, has announced its foray into auto insurance distribution through a new wholly owned subsidiary.
- The board has approved the formation of this subsidiary, which will act as a corporate insurance agent.
- The move is subject to approvals from the Registrar of Companies and the Insurance Regulatory and Development Authority of India (IRDAI).
Ather plans to invest an initial ₹8 Cr in the entity, with further capital infusion based on business scalability.
Why Insurance, and Why Now?
The foray into insurance is part of Ather’s broader ambition to build a full-stack EV ecosystem, going beyond vehicle manufacturing.
- The company aims to diversify revenue streams and generate recurring income by tapping into its growing customer base.
- By bringing insurance distribution in-house, Ather expects to:
- Improve attachment rates for insurance at the time of purchase
- Enable seamless renewals and servicing
- Collaborate with insurers to build EV-specific insurance products, rather than tweaking policies meant for petrol vehicles
This is also expected to enhance cross-selling capabilities, benefiting retail partners and customers alike.
Expanding the EV Ecosystem Stack
Ather has consistently worked to build a 360-degree EV ownership experience, spanning:
- Vehicle manufacturing
- Charging infrastructure
- Servicing and accessories
- Extended warranties (Eight70)
- Software subscriptions and riding gear
The addition of insurance brings Ather closer to being a one-stop destination for EV ownership.
“This move aligns with our focus on creating an ecosystem of biking and riding products,” said CBO Ravneet Phokela, referring to the company’s parallel efforts in software and accessories.
Growing Momentum in Sales & Non-Vehicle Revenue
Ather’s timing aligns with a strong growth trajectory:
- In 2025 (till November), Ather sold 1.85 Lakh units, a 47.84% YoY increase from 1.25 Lakh units in 2024.
- In September 2025, it outsold Ola Electric, clocking 18,197 units vs Ola’s 13,401.
- Non-vehicle revenue now contributes 12% of total revenue, up from 10% last year — a trend Ather wants to strengthen with this insurance play.
Financial Snapshot
In Q2 FY26, Ather reported:
- Operating revenue: ₹898.8 Cr
- Net loss: ₹154.1 Cr
- Share price: Up 3.7% to ₹686.40 (as of 14:07 IST on the BSE)
As the company aims for profitability, adding high-margin, low-CAC products like insurance can cushion core vehicle margins and reduce loss per unit.
Ather Energy will launch a wholly owned subsidiary to distribute auto insurance policies, aiming to build recurring revenue and streamline the insurance experience for its growing EV customer base. The move complements its broader ecosystem approach and follows strong sales and non-vehicle revenue growth in FY25.
