Ather pre-orders cross 50,000 a month, capacity lags
Ather Energy is taking over 50,000 pre-orders a month against a plant that can build 35,000. Dealer inventory has fallen to three days and some dealers have stopped taking bookings.
- Ather's monthly pre-orders have crossed 50,000 against roughly 30,000 units retailed a month in the first quarter.
- Annual capacity is 4.2 lakh units, or 35,000 a month at Hosur, leaving 13,000 to 15,000 units of monthly demand unmet.
- Dealer inventory has fallen from 14 days of stock to three days, with waiting periods past two months and fulfilment at 50% to 60%.
- Ather has completed a Rs 1,300 crore QIP and has a Rs 1,200 crore preference issue pending, a Rs 2,500 crore raise in total.
Ather Energy is now taking more than 50,000 pre-orders a month and cannot build them. The company retailed around 30,000 units a month in the first quarter. Between 13,000 and 15,000 units of monthly demand are going unmet, and Ather is fulfilling only 50% to 60% of what customers ask for.
The ceiling is physical. Annual capacity stands at 4.2 lakh units, which is 35,000 a month at the Hosur plant. That is the whole line. Pre-orders at 50,000 sit roughly 15,000 above it, which matches the shortfall being reported. Dealer inventory has compressed from 14 days of stock to three days. Waiting periods have crossed two months and some dealers have stopped accepting bookings.
Relief is funded and dated. The first phase of the AURIC facility takes annual capacity to 9.2 lakh units later this calendar year. A second phase under evaluation would add 5 lakh more, for 14.2 lakh in total. Ather has completed a Rs 1,300 crore QIP and has a Rs 1,200 crore preference issue awaiting approval, a Rs 2,500 crore programme. The lower-priced EL scooter is planned at about 60,000 units a month across facilities, with an initial push into northern and middle India, and the company expects more than 75% of EL buyers to take AtherStack Pro.
Three days of dealer inventory is not only a supply problem. It is a working capital transfer. Stock that dealers financed for two weeks now sits with them for three days, which pushes float back toward the manufacturer and flatters cash conversion for as long as the queue holds. It reverses the day the constraint clears. If you sell through a dealer network, plan the receivables cycle for the post-AURIC world, not this one, because your partners will ask for terms back the moment stock is available.
The exposed number is service. Non-vehicle revenue is already 14% of operating revenue, but service alone contributes 2% to 3% against an industry norm of 10% to 12%. The recurring layer is coming from software and accessories, not the workshop. Now add a cheaper model at 60,000 units a month into that same network. Capacity is a cheque you can write. Service throughput is a hiring and training cycle, and it does not scale on a QIP.
Zane’s analysis draws on original reporting by Entrackr. Read the original report.