Ather Demand Outpaces Capacity as Monthly Pre-Orders Cross 50,000

Ather Energy said monthly pre-orders have crossed 50,000, while retail volumes were around 30,000 units a month in the first quarter. Management estimates the company could have sold another 13,000-15,000 units per month if supply had been available. The takeaway is clear: Ather’s near-term growth depends less on creating demand and more on converting existing demand into deliveries.

The supply squeeze is visible at the dealer level. Dealer inventory has dropped from around 14 days to just three days, while existing stores are fulfilling only 50-60% of demand. Some dealers have stopped taking fresh bookings as waiting periods have stretched to two months or more.

Ather currently has annual production capacity of around 4.2 lakh units, with its Hosur facility capable of producing about 35,000 scooters a month. The first phase of its AURIC facility is expected to lift total annual capacity to 9.2 lakh units later this calendar year. A second AURIC phase could add another 5 lakh units annually and take total capacity to 14.2 lakh units, though investments have not yet started and more clarity is expected over the next one or two quarters.

Ather recently completed a Rs 1,300 crore QIP and is seeking shareholder approval for another Rs 1,200 crore preference issue, creating a planned Rs 2,500 crore fundraise. The funds are intended to accelerate capacity at Ather and its suppliers, support new launches and strengthen the balance sheet amid commodity and supply pressures. The upcoming lower-priced EL scooter is also a key capacity driver, with Ather planning capacity for around 60,000 EL units per month across Hosur and AURIC.

Ather is also building revenue beyond scooter sales. Non-vehicle revenue now accounts for 14% of operating revenue, with AtherStack Pro as the largest contributor. Management said service revenue could become a larger opportunity over time, noting that established two-wheeler companies generate around 10-12% of revenue from services compared with Ather’s current 2-3%.