Ather Energy Shares Up 5% as Delhi EV Policy 2.0 Boosts Electric Vehicle Adoption Outlook

Mumbai, June 30: Ather Energy share price surged to hit one year high on Tuesday after the Delhi government approved its Electric Vehicle (EV) Policy 2.0, a comprehensive roadmap aimed at accelerating the adoption of electric mobility in the national capital. Investors cheered the policy’s incentives for electric two-wheelers and its phased transition away from internal combustion engine (ICE) vehicles, sending shares of listed EV manufacturers sharply higher. 

The policy earmarks ₹15,000 crore over the next four years to promote electric mobility and reduce vehicular pollution. Analysts believe the measures could significantly improve demand for electric scooters, benefiting companies such as Ather Energy and Ola Electric, which derive a majority of their sales from the electric two-wheeler segment. As of writing, Ather Energy was up 5.5% at Rs 1,144.  

Subsidies to spur EV adoption 

Ather has surged 55% this year as investors cheer electric adoption. Source: Google

Under the new policy, buyers of electric two-wheelers will receive subsidies of ₹30,000 in the first year, ₹20,000 in the second year and ₹10,000 in the third year. In addition, eligible electric cars priced up to ₹30 lakh (ex-showroom) will be exempt from road tax and registration charges. 

The policy also lays out an ambitious transition plan, under which only electric autorickshaws will be registered in Delhi from January 1, 2027. Registrations of new petrol, diesel and CNG-powered two-wheelers will be discontinued from April 1, 2028, marking one of the country’s most aggressive timelines for electrifying personal mobility. 

Ather seen as a key beneficiary 

Brokerages and market participants expect Ather Energy to be among the biggest beneficiaries of the policy given its strong presence in the premium electric scooter market. The Bengaluru-based company has been expanding its retail footprint, charging infrastructure and product portfolio, positioning itself to capitalise on rising EV penetration. 

The company’s focus on technology-led products and growing network of fast-charging stations could further strengthen its competitive position as government incentives improve affordability and encourage consumers to switch to electric mobility. 

Broader impact on the auto sector 

While the policy boosted electric vehicle manufacturers, it weighed on several traditional automobile stocks due to concerns over the long-term impact on ICE vehicle sales. Investors are assessing how the transition roadmap could reshape the competitive landscape for automakers operating in one of India’s largest vehicle markets.

Analysts note that successful implementation of the policy will depend on adequate charging infrastructure, battery availability and sustained government support. Nevertheless, the latest measures reinforce Delhi’s commitment to cleaner mobility and are expected to accelerate EV adoption over the coming years, providing a favourable backdrop for electric two-wheeler manufacturers such as Ather Energy. 

Source

• https://www.nseindia.com/get-quote/equity/ATHERENERG/Ather-Energy-Limited