Ather Energy enters auto insurance business, shares jump 4%
What's the story
Ather Energy, a leading player in the electric two-wheeler segment, is all set to foray into the auto insurance distribution space. The company plans to do so by setting up a wholly owned subsidiary that will function as a corporate agent. The move was recently disclosed in a filing with the National Stock Exchange (NSE). Following the news, the company's shares rose over 4% to around ₹689 per share.
Regulatory process
Subsidiary's establishment pending regulatory approvals
The establishment of this new subsidiary is still pending. It awaits the necessary approvals from the Registrar of Companies (RoC) and the Insurance Regulatory and Development Authority of India (IRDAI). Ather Energy has already committed an initial investment of ₹8 crore in this venture, with plans for further funding as operations expand.
Business expansion
Ather Energy's strategic move to enhance customer experience
With this new venture, Ather Energy hopes to simplify its insurance offerings and improve customer experience. The company also wants to diversify its revenue streams by creating a recurring income stream. By bringing insurance distribution in-house, Ather plans to collaborate with different partners, simplify renewals, launch EV-specific insurance products, and increase insurance attach rates over time.
Market position
Ather Energy's market performance and future prospects
Despite a 30% month-on-month decline in registrations to 20,018 units in November, Ather Energy retained its third position with a 17.43% market share. In Q2 FY26, Ather surpassed rival Ola Electric with revenue of ₹899 crore—up from ₹583 crore in Q2 FY25—and reduced net losses by 20% to ₹157 crore from last year's ₹197 crore.