In this age of unicorn companies and startups, market valuation is something that could be easily overestimated. The situation in the electric two-wheeler market is also the same.
Ather CEO made a shocking comment about the market valuation of his company recently. The EV market is generally becoming more and more popular day by day. The government is trying to promote the adoption of EVs in India by offering a ton of subsidies and attractive incentives. People are also worried about the fluctuating fuel prices and are looking for alternates. In India, electric two-wheeler companies like Ather and Ola are the upcoming popular brands in this field. Let us dive a bit deeper into this market in terms of adoption and valuation in the immediate future.
Ather CEO Market Valuation
Replying to a tweet, Ather Energy CEO, Tarun Mehta said “It’s a stupid market”. This comes as a reply to a tweet by someone who couldn’t understand why Ather has been valued at almost 1/25th the market value of Ola Electric. For the uninitiated, Ather has been developing electric scooters for the past 8 years now. They have employed engineering, innovation, technology to come up with Ather E-Scooters which are selling quite well. In October 2021, they sold an impressive 3,500 scooters. This is a great statistic for the industry that is still at a nascent stage of its growth in our market. However, the big subsidies by the government will help fasten the adoption process provided that infrastructure develops quickly too.
Another big player in this space is Ola Electric. It had created a lot of buzz around its electric scooter and did a ton of promotional activities. That resulted in Ola receiving over 1 lakh bookings in the first hour of launch. However, there has not been a single delivery by Ola because the final product is still not ready to be roadworthy. Despite that, its market valuation is a whopping $5 billion compared to a mere $187 million of Ather. This is why we must take the market valuations of companies in this age with a grain of salt. That is exactly what the Ather CEO also meant when he address the market valuation process.