The Race for India’s Electric Future: Ola Electric vs. Ather Energy

The race for India’s electric future has reached a fascinating crossroads. On one track, Ola Electric sped past the IPO finish line with remarkable momentum last year. On the other, Ather Energy, celebrated for its stylish scooters and dedicated urban fanbase, is taking a more cautious approach, with its IPO eliciting a slower, more thoughtful response. As Ather’s public offering enters Day 2, the contrast between these two EV giants highlights not only their differing strategies but also what today’s investors truly seek in India’s burgeoning electric vehicle market.

Ola Electric vs. Ather Energy IPO: The Start Line

Ola Electric made its market debut in August 2024, backed by a substantial Rs 6,145 crore issue. The IPO was met with overwhelming enthusiasm, achieving a 4.27x oversubscription and a 20% surge on its listing day. In stark contrast, Ather Energy’s IPO, which opened on April 28, 2025, has experienced a sluggish start. By Day 2 of subscription, only a small fraction of the issue had been subscribed, indicating a more cautious investor sentiment. While Ola Electric entered the market with a bang, Ather is treading carefully, reflecting a more measured approach from investors.

Who is Investing?

Ola Electric’s IPO attracted a diverse array of investors, including institutional players and retail buyers, with significant participation from foreign institutional investors (FIIs). In contrast, Ather Energy has seen strong interest primarily from its employees, with their portion of the IPO subscribed 1.78 times. However, retail investors have shown lukewarm interest, and qualified institutional buyers (QIBs) were notably absent on Day 1, applying for only 5,060 shares out of over 2.89 crore available.

What is Under the Hood: Premium vs. Mass Play

Ola Electric has built its empire on scale, producing electric two-wheelers designed for the masses. The company boasts a sprawling gigafactory and has launched multiple vehicles, with plans to introduce over 20 more by 2027. This strategy positions Ola as a leader in the mass-market segment of the EV space.

Conversely, Ather Energy has opted for a more niche approach, focusing on high-end electric scooters characterized by cutting-edge technology and sleek design. Their latest offering, the Ather Rizta, targets families, but the company’s overall strategy remains firmly rooted in the premium segment.

Financial Health of These Companies

Both companies are currently operating at a loss. Ola Electric reported a net loss of Rs 1,584 crore in FY24, while Ather Energy incurred losses of Rs 1,059 crore during the same period. Despite this, Ola Electric demonstrated impressive growth, achieving a 90% year-on-year revenue increase and improved margins in Q3FY25. Ather’s path to profitability, however, remains uncertain, particularly given its high EV-to-sales valuation of 6x and reliance on imported components.

Long-Term Bet or Immediate Gain?

Ather Energy’s IPO is being perceived as a long-term investment, focusing on India’s urban EV future, innovation, and design-led mobility. As the issue progresses into its second day of bidding, some analysts recommend subscribing for potential listing gains, while others caution against overvaluation. The lack of enthusiasm in the grey market, with a flat GMP at Rs 1, reflects a cautious investor mood.

On the other hand, Ola Electric, despite facing challenges post-listing, benefits from its first-mover advantage. While it has encountered criticism, particularly regarding after-sales service, its strong market presence and rapid growth trajectory position it favorably in the competitive landscape.

Conclusion

The contrasting trajectories of Ola Electric and Ather Energy illustrate the diverse strategies and investor sentiments shaping India’s electric vehicle market. As the industry evolves, the choices made by these companies will not only define their futures but also influence the broader narrative of electric mobility in India. Investors are left to ponder: will they favor the rapid growth and mass appeal of Ola Electric, or the premium, design-focused approach of Ather Energy? The answer may well shape the future of electric vehicles in the country.