Ather Energy, one of India’s leading electric two-wheeler manufacturers, has taken a strategic step beyond vehicle manufacturing by entering the auto insurance distribution space. The company’s board has approved the formation of a wholly owned subsidiary that will focus on distributing auto insurance policies, marking Ather’s first formal foray into financial services.
The proposed subsidiary will operate as a corporate insurance agent and will offer, distribute, and facilitate motor insurance policies for customers. This move, however, is subject to regulatory approvals from the Registrar of Companies (RoC) and the Insurance Regulatory and Development Authority of India (IRDAI). Once the necessary clearances are in place, the new entity is expected to begin operations by leveraging Ather’s strong and rapidly growing customer ecosystem.
Ather Energy stated that the decision aligns with its long-term strategy of diversifying revenue streams and building recurring income models beyond vehicle sales. With a sizable base of electric scooter owners already using its connected ecosystem, service network, and digital platforms, the company sees a natural opportunity to extend its offerings into insurance distribution. By doing so, Ather aims to create a more integrated ownership experience while also unlocking new business potential.
The move also reflects a broader trend in the automotive and EV industry, where manufacturers are increasingly looking to deepen customer engagement through value-added services such as insurance, financing, charging solutions, and subscriptions. For Ather, offering insurance through a dedicated subsidiary could help simplify the purchase and renewal process for customers, while enabling more customised insurance solutions tailored to electric two-wheelers.
As electric vehicle adoption grows across India, insurance products designed specifically for EVs are gaining importance. Factors such as battery coverage, replacement costs, and charging-related risks require specialised insurance solutions, an area where Ather could potentially add value by working closely with insurance partners.
While Ather has not disclosed a timeline for the subsidiary’s launch or named potential insurance partners, the move signals the company’s intent to evolve into a broader mobility solutions provider. By tapping into insurance distribution, Ather Energy is positioning itself to strengthen customer relationships, improve lifetime value, and build a more resilient and diversified business model in an increasingly competitive EV landscape.
