Ather Energy Expands into Auto Insurance Distribution

Ather Energy, known for its electric two-wheelers, is venturing into the auto insurance distribution sector by establishing a fully owned subsidiary that will function as a corporate agent. This information was disclosed in a recent filing with the National Stock Exchange (NSE). The formation of this subsidiary is pending and is awaiting approval from the Registrar of Companies (RoC) and the Insurance Regulatory and Development Authority of India (IRDAI).

Ather’s Initial Investment and Future Plans

Ather is set to make an initial investment of Rs 8 crore in the new subsidiary, with plans for further investment as operations expand. This strategy is intended to streamline Ather’s insurance offerings, improve customer experience, and enhance revenue diversification by developing a consistent income stream.

In-house Insurance Distribution Benefits

By bringing insurance distribution in-house, Ather Energy plans to collaborate with various partners to simplify the renewal process. The company will also introduce insurance products specifically designed for electric vehicles (EVs) and aim to increase the rate at which insurance is attached over time.

Market Performance

As per Vahan data, Ather Energy maintained its third position in the market during November; however, it experienced a 30% month-on-month decrease in registrations, dropping from 28,405 units in October to 20,018 units in November. The company holds a market share of 17.43%.

Stock Performance and Financial Insights

At around 2:10 PM, Ather’s stock rose over 4%, trading at approximately Rs 689, with a market capitalisation of Rs 26,271 crore ($2.9 billion). In the second quarter, Ather surpassed its competitor Ola Electric, recording a revenue of Rs 899 crore in Q2 FY26, up from Rs 583 crore in Q2 FY25. The net losses of the company decreased by 20%, going from Rs 197 crore in Q2 FY25 to Rs 157 crore in Q2 FY26.