Ather Energy to Sign Long-Term Battery Supply Contract with Amara Raja

By siliconindia  |  Wednesday, 31 July 2024, 06:25:55 PM IST

Ather Energy to Sign Long-Term Battery Supply Contract with Amara Raja
Bengaluru-based electric two-wheeler leader Ather Energy is close to signing a long-term supply contract for batteries from Amara Raja Energy & Mobility. The proposed agreement will be India-specific batteries and give impetus to Ather's plans to cut dependence on imported batteries and bring down the vagaries in supplies and price volatility.
An official announcement from Tirupati-based Amara Raja will be made shortly. Battery supplies are likely to start in the next 12-18 months once the agreement is signed, the source said. Ather Energy plans to fully switch to local batteries in three-four years.
There was no response from Ather Energy or Amara Raja to requests for comments until going to press.
For Ather Energy, this would mean end to uncertainty of battery supply and a cut in imports; cost efficiency would be only its secondary objective. Batteries would be made by Amara Raja using India-specific cells designed to be more durable and offer better performance for India's higher temperature ranges. Unlike imported batteries, optimized for western climates that experience temperatures between 0-20°C, new batteries would be optimized for the average Indian temperature range of 25-45°C.
Ather Energy sold 35,879 electric two-wheelers in Q4FY24, taking its total fiscal year sales to 108,912 units, up 42 percent from a year ago, Vahan data showed. The company continued to have a strong market presence at an 11.8 percent market share in the last quarter of FY24. However, the quarterly run rate dropped to 16,411 units in the June quarter due to the reduction in government subsidy per kWh.

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