We are witnessing a decisive shift in how electric vehicle manufacturers build long-term value, and Ather Energy’s entry into auto insurance distribution represents a calculated step in that direction. By incorporating a wholly owned insurance distribution subsidiary, we are aligning vehicle sales, ownership services, and financial products into a unified ecosystem designed for scale, efficiency, and customer retention.

This move positions us not merely as an electric two-wheeler manufacturer, but as an end-to-end electric mobility solutions provider.

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Through regulatory filings with the National Stock Exchange, we have outlined plans to create a subsidiary that will operate as a corporate insurance agent, subject to approvals from the RoC and IRDAI. We will initially deploy Rs 8 crore into the venture, with further investments planned as transaction volumes and partnerships expand.

By owning the distribution layer, we gain greater control over product design, pricing alignment, policy servicing, and renewal cycles.

Electric vehicle manufacturing is capital intensive. We are addressing this reality by diversifying into recurring, asset-light revenue streams. Insurance distribution allows us to generate predictable income across the lifecycle of every vehicle sold, significantly improving long-term unit economics.

This strategy reduces dependence on one-time vehicle sales and strengthens financial resilience during demand fluctuations.

Traditional motor insurance often fails to account for the unique risk profile of electric vehicles. By bringing insurance distribution in-house, we can collaborate with insurers to design EV-optimised policies, including:

• Battery and powertrain coverage
• Software and electronics protection
• Charging equipment insurance
• Customised zero-depreciation plans

These products directly address customer pain points while increasing policy relevance and adoption.

We are integrating insurance workflows into the broader Ather ownership experience. This enables simpler renewals, faster policy issuance, and improved claims coordination. A frictionless insurance journey enhances customer satisfaction and strengthens brand loyalty.

Higher convenience directly translates into improved insurance attach rates over time.

With access to vehicle usage patterns, ownership tenure, and service data, we can intelligently recommend insurance products at the right time. This data-led approach allows us to optimise cross-selling without increasing customer acquisition costs.

As the installed base grows, insurance becomes a scalable monetisation lever.

According to Vahan registration data, we retained our third position in November, despite a 30% month-on-month decline in registrations to 20,018 units. Our 17.43% market share reflects strong brand recall in a competitive EV landscape. Rather than reacting tactically, we are reinforcing structural strengths through ecosystem expansion.

In Q2 FY26, we surpassed key competitors by reporting Rs 899 crore in revenue, up from Rs 583 crore in Q2 FY25. More importantly, we reduced net losses by 20% year-on-year, bringing them down to Rs 157 crore.

This combination of revenue growth and loss reduction demonstrates disciplined execution.

Investor sentiment reflects confidence in our long-term strategy. Our shares traded over 4% higher at around Rs 689, translating into a market capitalisation of Rs 26,271 crore ($2.9 billion). The market recognises the value of ecosystem-driven growth over pure volume chasing.

Insurance distribution is not a standalone initiative. It complements our investments in charging infrastructure, software, connected services, and after-sales support. Together, these elements create a defensible, high-retention business model.

We are deliberately moving toward a platform where every customer interaction creates long-term value.

As electric mobility adoption deepens in India, companies that control the customer lifecycle will lead the market. By integrating insurance distribution into our operations, we are laying the groundwork for sustainable, diversified, and scalable growth.

This strategic expansion reinforces our commitment to building a future-ready electric mobility ecosystem.