How electric scooters caught fancy of Tier 2, Tier 3 cities
If you thought electric scooters have caught the fancy of only people in the metros, think again. According to data from electric two-wheeler maker, Ather Energy, 54 per cent of its sales of scooters, starting from Rs 1.2 lakh, come from Tier 2 and Tier 3 cities.
Based on sales per lakh population, the top five cities for the company are Calicut, followed by Kochi, Kolaphur, Trivandrum and Pune. The big metros are conspicuous by their absence in this list. Tier 2 cities account for 30 per cent of Ather Energy’s sales and 24 per cent comes from Tier 3 cities.
The other myth about electric two-wheelers is that customers prefer to opt for basic models at prices below Rs 1 lakh. Ather’s sales data shows that the company’s product split is skewed heavily towards its most expensive model, 450X, which accounts for 84 per cent of its sales and is priced around Rs 1.5 lakh. Only 16 per cent of its total sales comes from 450 Plus, which is priced at Rs 1.3 lakh.
Ravneet S Phokela, chief business officer at Ather Energy, explains, “As we are selling electric scooters starting from Rs 1.3 lakh, we would have been concerned if their market was only in the metros. But our sales patterns clearly show that there is a large market in Tier 2 and Tier 3 cities where customers are ready to pay a premium for a quality product.”
Phokela says that this trend is also because of the easy availability of financing for buying electric scooters. As much as 40 per cent to 45 per cent of the company’s vehicles are sold through this route.