Ola Electric rival Ather Energy enters auto insurance space with new subsidiary

Ather Energy, an electric two-wheeler maker that competes with Ola Electric, has confirmed plans to enter the auto insurance distribution space by setting up a wholly owned subsidiary that will operate as a corporate agent.

The move is aimed at making vehicle ownership more seamless by offering auto insurance policies to Ather customers in partnership with multiple insurers.

According to an exchange filing, the subsidiary is yet to be incorporated and will require approvals from the Registrar of Companies (RoC) and the Insurance Regulatory and Development Authority of India (IRDAI).

Ather plans an initial investment of Rs 8 crore in the new entity, with additional capital to be infused as the business scales.

The company said the insurance arm will focus on distributing auto insurance products tailored for Ather’s electric two-wheelers.By bringing insurance distribution in-house, Ather aims to simplify policy purchase and renewals, improve insurance attach rates, and work with partners to design EV-specific insurance products that better reflect real-world usage rather than adapting traditional frameworks.

“We have always believed that a good ownership experience goes beyond the vehicle itself. Insurance is a critical part of that journey today, and it’s an area where the experience can be made significantly simpler and more predictable for customers,” said Ravneet Singh Phokela, chief business officer at Ather Energy.

“By bringing insurance distribution closer to the Ather ecosystem, we can make it simpler, more transparent, and better aligned with how our customers actually use their vehicles. Over time, this also gives us the ability to work with partners to design auto insurance products that reflect real EV usage, rather than adapting legacy frameworks. This is a measured but deliberate step, focused on strengthening the ownership experience while building a capability that complements our core offering and scales with the business.”

Ather’s move into insurance is part of a broader strategy to build an integrated ecosystem around its electric scooters. The company’s offerings already span vehicles, charging infrastructure, retail and service networks, accessories, software, and ecosystem products such as the Eight70 warranty programme.

The development comes at a time when Ather continues to navigate a competitive electric two-wheeler market. According to Vahan data, the company retained its third position in November, although registrations declined 30% month-on-month to 20,018 units from 28,405 units in October. Ather currently holds a 17.43% market share.

Financially, the company reported improved performance in the second quarter of FY26. Ather posted revenue of Rs 899 crore in Q2 FY26, up from Rs 583 crore in the same quarter last year, overtaking rival Ola Electric during the period. Net losses narrowed by 20% to Rs 157 crore in Q2 FY26 from Rs 197 crore in Q2 FY25.