Ather bets on tech over building cells in-house

Ather Energy Ltd considers investing in new technology and branding a better option than spending on developing battery cells and components in-house, according to the electric scooter maker's co-founder, as a supply chain already exists for many of the parts in India.

- Ayaan Kartik

"Assembly, manufacturing, ultimately, after a certain point, is only so much valuable. It's a very last step optimization," Tarun Mehta, also the chief executive at Ather, said in an interview. "The much richer optimization is in IP (intellectual property) and brand today. So, we will always put our money there."

Mehta, also the chief executive of the Bengaluru-based company, said, "We are big believers, contrary to some of our peers in the industry, that the real money will be made or lost on your fundamental product architecture. And that's down to how much engineering you do, how much money you put in there, how much attention you put in there."

The question of building everything in-house has raged in the automobile industry after China curbed the supply of rare-earth magnets, a key component in motors. Makers of both fossil fuel-powered engines and EVs flagged concerns and have drawn up plans to build alternatives or their own supply chains. However, tensions between India and China have started easing, offering hope to the automotive sector that, according to government estimates, was valued at $240 billion in 2024.

The country's EV market, Grand View Research estimates, is worth $8.4 billion.