Ather Energy, the Indian electric scooter manufacturer, and Tesla, a worldwide electric car leader are considered as two of the top dogs in their segments globally.
In this way both companies are united by the same goal — to change and revolutionize the transportation industry, but they have very different business model of Ather Energy and business model Tesla given their markets, products, and strategies.
In this piece, we will explain what the business model for Ather and Tesla are like compared to each other.
Overview of Ather Energy
Ather Energy is an electric vehicle company in India with Tarun Mehta and Swapnil Jain as founders, this was disclosed by the partners back in 2013. Its focus is primarily on manufacturing electric scooters and it has successfully emerged as a formidable maker in India’s burgeoning EV space.
Another major electric two-wheeler player in the country is Adar, with its mobility products among some of the most advanced EVs to hold Indian origins. Adar has created a brand that appeals to the younger tech-savvy audience searching for green alternatives in personal transport, with performance and technology focus underpinned by smart features.
Overview of Tesla
Tesla, founded by Elon Musk and his team in 2003, has become synonymous with electric cars around the world. The company’s mission is to accelerate the transition to sustainable energy by producing electric vehicles and clean energy products.
Tesla is known for its range of electric cars, including the Model S, Model 3, Model X, and Model Y, all of which boast advanced technology, long-range capabilities, and attractive design. In addition to electric vehicles, Tesla has expanded its product line to solar power solutions and energy storage devices such as the Powerwall.
Ather’s Business Model
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Product Focus
The Scooters are the primary products of Ather Energy, a company that targets the Indian market with its business model. Their scooters have distinctive futuristic looks and are packed with intelligent technology like touchscreen instrument clusters and have smartphone controls.
Ather has also focused on Research & Development to enhance the battery, the range, and the performance of the scooter. By focusing on two wheels, Ather aims at the vast middle-class population in India where scooters are commonly used.
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Manufacturing and Supply Chain
Ather has followed a closed factory distribution network for their scooters. It also has its factory in Hosur, Tamil Nadu, which enjoys more control over quality and quantity production. Ather directly sources key components such as batteries and electric motors from domestic and global suppliers, which lowers the costs as production scales up besides guaranteeing quality parts.
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Charging Infrastructure
Another key element of Ather business model is charging infrastructure for its customers called Ather Grid. The company has strategically located charging points in most of the cities across India making it similarly convenient for other scooter users.
This particular general undertaking assists in minimizing the issues that are commonly linked to electric automobiles, including range anxiety in consumers interested in making a switch to electric scooters.
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Subscription Services
Ather provides its customers with paid services such as access to software, customized navigation, theft protection, and vehicle analysis. All these services are packaged into several packages, thus allowing users to select the amount of service they want.
This means the company can continue to make consistent and continuous income from customers who choose to renew their subscription to the services, apart from earning the initial revenues from the sale of their electric vehicles.
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Direct-to-Consumer Sales Model
Ather primarily focuses on selling scooters directly to consumers without the need for any intermediaries, through its website and experience centers. This means that Ather has an opportunity to make substantial savings on the overall cost of production while at the same time owning the customer relationship. These experience centers assist potential buyers get a closer and better feel of the scooter efficiently.
Tesla’s Business Model
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Product Focus
Tesla thus offers far more than Atheros, about product diversification. Tesla business model makes and sells electric vehicles, solar generation, energy storage, and energy products. Tesla produces cars for every class, from the middle-class Model 3 to luxury Model S and X models.
The company has expanded to the use of self-driving technology, offering Full Self-Driving (FSD) software for improved performance. The goal of Tesla is much more than just to produce electric cars; it wants to be a major provider of sustainable energy solutions.
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Manufacturing and Supply Chain
Tesla is an international company that has its Gigafactory’s in different parts of the world, namely in the United States, China, and Europe. These factories develop, manufacture, and produce affordably electric cars, batteries, and energy storage products.
Vertical integration enables Tesla to manage many aspects of the supply chain, including battery production which is crucial for cutting expenses while ensuring outstanding performance. Tesla also secures its resources like lithium and cobalt required to manufacture the batteries for its mass production.
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Charging Infrastructure
Supercharger, Tesla Company’s charging stations, comprises one of the largest networks of stations globally. Tesla business model has put a lot of effort into establishing this network to support electric cars for long-distance journeys.
Tesla cars can also be charged very fast so that owners do not have to endure charging the battery for a very long time. Specifically, access to a reliable charging infrastructure has been one of the key drivers of Tesla’s success around the world, as consumers can switch to electric cars without worrying about the number of miles they can drive on a single charge.
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Subscription Services and Software
Tesla also utilizes subscription services but in this case, they are used as an addition to the vehicle functionality. Tesla’s Full Self-Driving (FSD) system is an option in vehicles with increased driving capabilities and can be added through a monthly subscription or outright purchase.
Tesla also continually brings out firmware updates that enhance the vehicle’s performance, safety, and comfort. These updates assist Tesla in developing and maintaining customer value, even after a shopper has purchased a car.
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Direct-to-Consumer Sales Model
Tesla disrupted the car business model by implementing a new sales strategy that eliminates car dealerships. Customers can customize and order their car directly through the website, and the company then delivers the car directly to the customer.
In this business model, Tesla can control the entire loop from the customer buying experience to the maintenance of the battery after purchasing a car. In this way, Tesla eliminates the middleman, decreases costs, and improves the experience of purchasing electric cars.
Key Differences Between Ather and Tesla’s Business Models
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Market Focus
Ather Energy is mainly focused on the Indian market to supply scooters which are the most popular means of personal transport in the country. The company establishes its presence and product portfolio with price-sensitive, intelligent, and economical electric scooters to meet the demands of Indians.
While GM focuses on domestic clients, Tesla aims for sales in the worldwide market as a producer of luxurious electric cars. Tesla business model offers more premium products and targets a different consumer base, particularly in developed countries like the USA, Europe, and China.
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Product Diversification
Whereas Ather is only concentrating on the electric scooter industry, Tesla business model has a variety in its product portfolio such as electric cars, energy storage solutions, and solar products. While Tesla has the advantage of diversification, Ather can focus more directly on the two-wheeler market in India.
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Scale of Operations
This is a major plus for Tesla as it currently operates on a much larger scale than Ather. Ather does not have the advantage of manufacturing electric vehicles and batteries on a scale that Tesla’s gigafactories have. Like its competitors, Tesla operates in the global market and the large scale tends to provide it with larger economies of scale, production efficiency, and recognition.
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Technological Innovation
Both are innovative but Tesla outcompetes BMW because of the high-end technologies in its cars like autonomous driving, AI, and batteries. Tesla is one of the early innovators of fully self-driving cars, which will likely redefine the automotive sector. Ather, being an electric scooter company, is more aligned with creating a smart and connected scooter.
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Energy Solutions
Tesla’s business model does not only revolve around cars but also clean energy. The products that include solar panels, roofs, and energy storage products are in agreement with the company’s mission of clean energy. While Ather has yet to foray into the energy sector, it is concentrated on electric mobility.
Conclusion
Therefore, Ather and Tesla are two companies in the same field but with contrasting business model strategies for their target markets and customers. Thus, by focusing on electric scooters and charging infrastructure development in India, Ather has secured its position among significant EV market players in the country.
Tesla’s strategic outlook of energy efficiency and a shift to cleaner energy sources has made the company unchallengeable in the EV segment, backed by a global presence and the use of advanced technology. Thus, both companies have been profitable by assessing the demands of the clients as well as presenting their goods in niches.
Whereas Ather is solely targeting the young urban scooter buyers in India by providing them with smart, effective, and cheap electric two-wheelers, Tesla, on the other hand, has a broader vision of shifting the entire world to clean energy by developing eco-friendly electric cars and energy products.
Given these shifts in the coming years, it will be interesting to observe how Ather and Tesla navigate the rapidly growing market and seize new opportunities as well as respond to novel threats. Read up on new information regarding electric cars and green mobility on EV Hexa.
FAQ’s
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What is Ather’s business model?
Ather is an Indian company that manufactures electric scooters. These scooters have smart features such as app connectivity and charging infrastructure (Ather Grid). They sell directly to customers and also offer subscription services.
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What is Tesla’s business model?
Tesla is also an electric vehicle company, but they don’t just make cars but also solar panels and battery storage systems. They sell their products directly to customers and also have a Supercharger network worldwide.
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How do Ather and Tesla differ in market focus?
Ather focuses on electric scooters in India, while Tesla markets electric cars worldwide. Tesla cars are a bit more expensive.
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Do both companies use a direct-to-consumer sales model?
Yes, both companies sell directly to customers. They don’t use dealerships.
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What is the key difference in product offerings?
Ather mainly manufactures the Ather 450X scooter. Tesla has a variety of products such as Model 3, S, X, and Y cars, solar panels, and battery storage systems.
