Electric two-wheeler manufacturer Ather Energy is preparing to enter the auto insurance distribution space through a new wholly owned subsidiary, according to a regulatory filing with the National Stock Exchange. The proposed entity will function as a corporate insurance agent and focus on distributing vehicle insurance products.
Ather Auto Insurance
The subsidiary is yet to be formally incorporated and will require approvals from the Registrar of Companies and the Insurance Regulatory and Development Authority of India before beginning operations. The filing indicates that Ather plans an initial investment of Rs 8 crore, with scope for further capital infusion as the business expands.
By bringing insurance distribution in-house, Ather aims to simplify the buying and renewal process for customers while also building an additional, recurring source of revenue. The company intends to work with multiple insurance partners rather than relying on a single provider.
Subsidiary Formation Plan
The move is expected to allow closer integration of insurance services with Ather’s existing vehicle sales and ownership journey. Customers could benefit from smoother policy issuance, easier renewals, and products tailored specifically for electric vehicles, including coverage aligned with battery life and EV usage patterns.
Industry observers note that auto manufacturers entering insurance distribution is a growing trend, as it helps improve insurance attachment rates and customer retention. For EV makers, it also opens the door to developing policies that reflect lower running costs but higher component values.
Ather has stated that the subsidiary will operate as a corporate agent, which typically allows companies to distribute policies from multiple insurers. This structure provides flexibility in product design and pricing while keeping regulatory compliance centralised.
Market Context and Performance
The expansion comes at a time when Ather continues to face fluctuating sales in a competitive electric two-wheeler market. According to Vahan data, the company retained its third position in November, though registrations declined by around 30% month-on-month to 20,018 units from 28,405 units in October. Its market share currently stands at 17.43%.
Despite short-term volume pressure, Ather has shown improvement in its financial performance. In the second quarter of FY26, the company reported revenue of Rs 899 crore, up from Rs 583 crore in the same period last year. It also overtook rival Ola Electric during the quarter in terms of revenue.
Net losses narrowed by 20% to Rs 157 crore in Q2 FY26, compared with Rs 197 crore in Q2 FY25, indicating better cost control and operating leverage as scale improves.
Investor Response Outlook
Following disclosure of the insurance subsidiary plan, Ather’s shares were trading over 4% higher at around Rs 689 in afternoon trade, giving the company a market capitalisation of approximately Rs 26,271 crore. Investor interest reflects optimism around diversification beyond vehicle sales.
Analysts say insurance distribution could strengthen Ather’s long-term business model by adding predictable income streams and deepening customer engagement across the ownership lifecycle.
As regulatory approvals are awaited, the timeline for launch remains unclear. However, the move signals Ather Energy’s intent to expand its role from a vehicle manufacturer to a broader mobility services provider within India’s fast-evolving electric vehicle ecosystem.
