BIG Price Drop Coming For Ather Electric Scooters: We Explain
Ather Energy is making a bold move that could shake up the electric two-wheeler market. The Bengaluru-based EV maker recently confirmed that it will roll out a Battery-as-a-Service (BaaS) pricing model, potentially slashing upfront scooter prices by up to 40 percent. This change comes at a time when the segment is becoming increasingly competitive, with rivals like Ola Electric and TVS offering lower-cost alternatives to capture value-conscious buyers.
The BaaS model works by separating the cost of the battery from the price of the scooter. Instead of paying for the entire vehicle up front, buyers will pay a reduced price and then subscribe to the battery through a monthly plan. This makes the initial cost of ownership much lower and brings Ather's scooters within reach of a wider range of users, especially those buying an EV for the first time.
Price Cuts That Could Change the Game
While Ather has not shared final figures, early estimates suggest that this model could reduce the scooter's upfront price by thirty thousand to sixty thousand rupees depending on the variant. For example, the 450S, which currently starts at around one lakh thirty thousand rupees, could be offered at close to ninety thousand rupees without the battery. This would put it in the same price bracket as popular petrol scooters like the Honda Activa and TVS Jupiter.
Once the buyer owns the scooter, they will pay a monthly battery rental fee. This subscription is expected to range from around eight hundred to fifteen hundred rupees a month, based on usage. The monthly fee also removes the long-term concern around battery ageing or replacement, which remains one of the most common worries among electric vehicle owners.
The rollout will begin in key cities including Bengaluru, Mumbai and Delhi, starting July 2025. Over time, Ather plans to introduce bundled services where battery rental also includes roadside assistance, performance upgrades and servicing, bringing more convenience and peace of mind to the user.
Why Ather Is Betting Big on This Model
This decision is not only about reducing cost but also about staying competitive in a market that is evolving fast. Ola Electric has already captured a strong share by offering more affordable models with high range figures and modern features. Bajaj and TVS have also been expanding quickly with attractively priced EVs backed by large dealer networks.
Ather has taken a premium route, focusing on performance, build quality and user interface. While this has earned it a loyal customer base, it has also limited its reach. The BaaS strategy allows Ather to offer a lower entry price without diluting its brand. By retaining battery ownership, Ather can also manage battery life better and potentially reuse or recycle batteries at the end of their life cycle.
This model could help Ather establish a new standard in urban EV ownership, particularly in the commuter segment. Buyers get a technologically advanced scooter for less money up front and the brand gets recurring monthly revenue, along with the ability to collect more real-world usage data.
A New Direction for Two-Wheeler Buyers
The bigger impact of this announcement could be a change in how people think about buying and owning electric scooters. For delivery riders, office commuters and even students, the ability to own an electric vehicle at petrol-equivalent prices without worrying about battery degradation could be very attractive.
Fleet operators, in particular, are already showing interest in this pricing model because it fits well into their cost structures. If battery swaps or upgrades become easier in the future, the BaaS approach could reduce downtime and increase asset utilisation for commercial buyers.
However, success will depend on how Ather prices the monthly plans, how widely the service is available and how flexible the battery lease terms are. If not managed carefully, riders could perceive the monthly fees as an added burden rather than a benefit.
Market Reaction Will Be Key
The next few months will be important. Ola and TVS will closely watch how buyers respond to Ather’s strategy. While Ola already has a strong pricing advantage, it may consider its own version of battery leasing if Ather sees a significant bump in sales. TVS could look at extending battery warranties or bundling services to retain customer interest.
For now, Ather has sent a clear message to the industry. Making electric vehicles more affordable through smarter pricing, not just cheaper components, might be the key to winning the next phase of this rapidly growing market.