November 2024
Case
HBS Case Collection

Ather Energy: The Future of Mobility

By: Shunyuan Zhang, Kannan Srinivasan and Malini Sen

Format:Print
| Language:English
| Pages:23

Abstract

Ather Energy, India’s third-largest electric scooter maker by volume, was founded in 2013. Five years later, the start-up launched its first electric scooter, Ather 450, which was powered by artificial intelligence (AI) and the Internet of Things (IoT), to navigate India’s chaotic traffic and road conditions. The start-up had a single-product focus: Ather 450, a high-performance scooter targeting millennials and EV enthusiasts. Ather analyzed user data to improve the product and enhance customer experience. The data-driven, customer-focused strategy helped Ather 450 to secure a unique position in the market and enabled the company to garner around 13% of the market share in less than five years. To sustain future growth in the presence of rising competition, co-founders Tarun Mehta and Swapnil Jain debated several strategies, including widening their single-product portfolio and targeting a different customer segment. Would pursuing a mass market strategy by launching lower-end products impact Ather’s brand equity? Amid increasing competition and market saturation, it was crucial the founders made the right decision.