Ather says tech innovation will win its profitability race

Ather Energy Ltd believes that selling more vehicles will not give any electric two-wheeler maker an edge in terms of better profit margins, as all companies have similar cost structures as they access the same supply chain.

- Ayaan Kartik & Varun Sood

Instead, it is investments in technology with a focus on improving processes that could help two-wheeler EV makers achieve better margins, according to the Bengaluru-based company’s co-founder and chief executive officer Tarun Mehta.

“There's an incorrect assessment of the automotive industry that whoever produces more will have a better margin,” Mehta told Mint.

“Volume has played a minimal role in unit economics over the years. There's a ton of value engineering. There's a lot of process optimization, and then there’s a lot of technology improvement to bring in, which improves cost structures. Engineering is the superpower.”