“Over time, this will give us the ability to work with partners to design auto insurance products that reflect real EV usage, rather than adapting legacy frameworks. This is a measured but deliberate step, focused on strengthening the ownership experience while building a capability that complements our core offering and scales with the business,” Ravneet Singh Phokela, Chief Business Officer, Ather Energy, said.
The move will enable Ather to streamline its insurance offerings, enhance customer experience and generate a recurring revenue stream by leveraging its existing user base, a company statement said.
Through this platform, Ather intends to work with multiple insurance partners. By taking distribution in-house, Ather will also be able to innovate around EV-specific insurance products, simplify renewals and potentially improve attach rates over time.
Since the platform will serve its existing users, there are no additional customer acquisition costs and it is expected to deliver steady, incremental revenue with limited investment. For customers, this also means a more integrated experience from buying the vehicle to getting insurance for it and handling renewals.
Ather’s foray into auto insurance is a part of its larger strategy to build a well-integrated ecosystem around its EV two-wheelers.
