Ather Energy to enter auto insurance distribution
The move is expected to help the EV maker streamline its insurance offerings, improve customer experience and generate a recurring revenue stream.
Electric vehicle manufacturer Ather Energy on Friday confirmed its plan to enter the auto insurance services space by setting up a wholly owned subsidiary.
The new entity will focus on offering auto insurance policies, in partnership with multiple insurers, for its customers across the country, Ather said in a regulatory filing.
This move is expected to help the EV maker to streamline its insurance offerings, enhance customer experience and generate a recurring revenue stream by leveraging its existing user base.
The company, by taking insurance distribution in-house, will also be able to innovate around EV-specific insurance products, simplify renewals, and improve attach rates over a period of time.
“We have always believed that a good ownership experience goes beyond the vehicle itself. Insurance is a critical part of that journey today, and it’s an area where the experience can be made significantly simpler and more predictable for customers. By bringing insurance distribution closer to the Ather ecosystem, we can make it simpler, more transparent, and better aligned with how our customers actually use their vehicles,” said Ravneet Singh Phokela, Chief Business Officer, Ather Energy.
“Over time, this also gives 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,” he added.
The company noted that it will not have to shell out any additional customer acquisition costs as it will cater to existing users of the company. These new offerings are also expected to deliver steady revenue with limited investments.
According to the company, this move is part of Ather’s strategy to build an integrated ecosystem around its electric two-wheelers, spanning vehicles, charging infrastructure, servicing, accessories, ecosystem products such as warranty and software.
Edited by Jyoti Narayan