Shares of Ather Energy are up 8% in today’s session. What’s behind the wave?

Shares of electric two-wheeler company Ather Energy rose as much as 8% to the day’s high of Rs 717 to end the week on strong footing after the company announced its plans to enter the auto insurance services market by setting up a wholly owned subsidiary that will operate as a corporate agent. In an effort to make the ownership experience more seamless, the new entity will focus on offering auto insurance policies, in partnership with multiple insurers, to its customers across the country.

“This move will enable Ather to streamline its insurance offering, improve the customer experience and generate a recurring revenue stream by leveraging its existing user base. Through this platform, Ather plans to collaborate with multiple insurance partners,” the company said in a regulatory filing. “By taking distribution in-house, Ather will also be able to innovate around EV-specific insurance products, simplify renewals and potentially improve attachment rates over time,” it added.

Ather’s foray into auto insurance is part of Ather’s broader strategy to build a well-integrated ecosystem around its EV two-wheelers, an ecosystem that includes vehicles, charging infrastructure, maintenance, accessories and ecosystem products.

Because the platform will serve Ather’s existing users, there will be no additional customer acquisition costs and is expected to generate stable, incremental revenues with limited investments. For customers, this also means a more integrated experience, from purchasing the vehicle to getting insurance for it and handling renewals, the company said.

Ravneet Singh Phokela, Chief Business Officer at Ather Energy, said: “We have always believed that a great ownership experience goes beyond the vehicle itself. Insurance is a critical part of that journey today and it is an area where the experience can be made significantly simpler and more predictable for customers. By bringing insurance distribution closer to the Ather ecosystem, we can make it simpler, more transparent and more aligned with the way our customers actually use their vehicles.”

This is a measured but deliberate move, aimed at strengthening the ownership experience while building a capability that complements our core offering and grows with the business, Phokela added. Ather Energy shares made their stock market debut in May this year. The stock has already delivered double-digit returns, rising 118% from its issue price in just seven months.

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