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Shares of Ather Energy gained as much as 7.11% after the company on Friday, December 19, announced its plans to venture into the auto insurance services space by incorporating a wholly-owned subsidiary.
The new subsidiary will operate as a corporate agent for the company, "offering auto insurance policies, in partnership with multiple insurers," for Ather's customers across the country, the electric two-wheeler manufacturer told the exchanges.
According to the company, the move aims to enhance customer experience, and generate a recurring revenue stream by leveraging its existing user base.
Calling insurance a critical part of a good vehicle ownership experience, Ravneet Singh Phokela, Chief Business Officer, Ather Energy, said, “By bringing insurance distribution closer to the Ather ecosystem, we can make it simpler, more transparent, and better aligned with how our customers actually use their vehicles."
Ather intends to work with multiple insurance partners, "design auto insurance products that reflect real EV usage, rather than adapting legacy frameworks," Phokela said.
The move will enable Ather to innovate around EV-specific insurance products, simplify renewals, and potentially improve attach rates over time, the company said in a press release.
This is a measured but "deliberate" step, given its existing customer base, resulting in no additional customer acquisition costs. Ather’s foray into auto insurance is a part of Ather’s larger strategy to build a well-integrated ecosystem around its EV two-wheelers, the company said.
Ather Energy reported a net loss of ₹154 crore in Q2FY26, compared to ₹197 crore a year ago. Revenue rose 54% year-on-year (YoY) to ₹899 crore from ₹584 crore. The company's EBITDA loss stood at ₹132 crore against ₹138 crore in the same period last year, while total expenses rose 38% to ₹1,095 crore.
Following the development, shares of the company closed 7.11% higher at ₹710 on Friday. The stock has gained 122.43% in the last six months.
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The new subsidiary will operate as a corporate agent for the company, "offering auto insurance policies, in partnership with multiple insurers," for Ather's customers across the country, the electric two-wheeler manufacturer told the exchanges.
According to the company, the move aims to enhance customer experience, and generate a recurring revenue stream by leveraging its existing user base.
Calling insurance a critical part of a good vehicle ownership experience, Ravneet Singh Phokela, Chief Business Officer, Ather Energy, said, “By bringing insurance distribution closer to the Ather ecosystem, we can make it simpler, more transparent, and better aligned with how our customers actually use their vehicles."
Ather intends to work with multiple insurance partners, "design auto insurance products that reflect real EV usage, rather than adapting legacy frameworks," Phokela said.
The move will enable Ather to innovate around EV-specific insurance products, simplify renewals, and potentially improve attach rates over time, the company said in a press release.
This is a measured but "deliberate" step, given its existing customer base, resulting in no additional customer acquisition costs. Ather’s foray into auto insurance is a part of Ather’s larger strategy to build a well-integrated ecosystem around its EV two-wheelers, the company said.
Ather Energy reported a net loss of ₹154 crore in Q2FY26, compared to ₹197 crore a year ago. Revenue rose 54% year-on-year (YoY) to ₹899 crore from ₹584 crore. The company's EBITDA loss stood at ₹132 crore against ₹138 crore in the same period last year, while total expenses rose 38% to ₹1,095 crore.
Following the development, shares of the company closed 7.11% higher at ₹710 on Friday. The stock has gained 122.43% in the last six months.
ALSO READ | Adani plans nuclear energy foray as India allows private firms
