Ather Energy Doubles Retail, Service Network

Ather Energy more than doubled its retail and service network in the financial year 2026, using a sharp product-led expansion to drive growth in sales and market share.

The electric scooter maker expanded its store count from 351 to 700 outlets by March 2026, while also more than doubling its service centres, as it scaled up distribution across key markets. “We were confident that a new product will unlock new stores for us, and those stores can drive a strong growth trajectory for the business, which has happened,” co-founder Tarun Mehta said. “Distribution was particularly a growth lever that we were very bullish on.”

The company added 80–90 stores every quarter during the year, but said expansion was paced carefully. “We were very clear that we will add stores when they’re independently viable, and we’ll add them on the back of a new product,” Mehta said.

A large part of the new outlets came through existing partners, with about 75% of stores opened by current dealers, reflecting improved dealer economics. Ather followed a targeted approach to expansion, focusing on what it calls “Middle India”, which includes states such as Gujarat, Maharashtra, Madhya Pradesh, Chhattisgarh and Odisha. This region saw the highest increase in outlets, with store count rising 125% year-on-year.

The strategy was closely tied to product rollout. The launch of the Rizta scooter helped the company expand into new markets and deepen its presence in existing ones, leading to further store additions. Following the Rizta launch, market share in some states rose from 4% to 14% within a few quarters, and further store additions helped push it closer to 20%.

Ather’s registrations rose 82% to 238,461 units during the year, while its market share increased to 17% from 11.4%. “It’s also improved our market share, improving by about 1,100 basis points from about 8% to about 18.6% in the fourth quarter,” Mehta said.

Growth was led by newer regions. “Middle India, which was at a 4% market share at the start of FY25, today has more than quadrupled market share for Ather to 17.3%,” he said. “The rest of India has done well, tripling its market share from just under 4% to 12%.”

In southern markets, where Ather already had a strong base, expansion also supported gains. “Even in the South, where we’ve added 80% more stores, we’ve seen a market share growth from 13% to 23%,” Mehta said.

Alongside retail expansion, Ather also stepped up investments in aftersales. “Our service centres have more than doubled this year, and particularly in the last two quarters, they’ve become a large part of what we’re focusing on and scaling up across the country,” Mehta said.

With a wider network now in place, the company is positioning itself to capture further growth as demand for electric two-wheelers prepares to launch models under its new EL platform.