Ather Energy announces price hike of up to ₹3,000 on adverse forex math

Key Highlights

• An adverse forex math is weighing on the cost of raw material and electronic components, it stated.
• Still, prospective buyers can lock-in the current prices by making a booking before the price hike takes effect in less than 10 days, along with benefits of up to ₹20,000 under the company's so-called ‘Electric December’ offer. The price hike comes at a time when the Indian Rupee has weakened by nearly 6% against the US dollar, putting it on the track for its steepest annual decline since 2022.
• A pricier dollar makes imports of EV components, such as lithium-ion cells, more expensive. Ather Energy has achieved 99% localisation for the mechanical and structural parts— chassis, motor, battery pack, dashboard, suspension units, body panels, etc.
• That's excluding lithium-ion cells, which account for 30-40% of the total cost of an EV.
• Certain semiconductor chips are also an import cost. It's worth noting here that Ather Energy has developed new motors that do not rely on heavy rare-earth magnets, thereby reducing import costs further.