Using facts provided in the case, conduct a strengths, weaknesses, opportunities, and threats (SWOT) analysis of AE
Using facts provided in the case, conduct a strengths, weaknesses, opportunities, and threats (SWOT) analysis of AE
AE had already gone through several rounds of funding (see Exhibit 1),7 and in June 2019, it had one
manufacturing centre with an installed capacity of 20,000–25,000 units. The manufacturing centre was
located in Bengaluru, which was also the only city in which AE sold its smart e-scooters. AE had also
created a comprehensive public charging network called AtherGrid, which was launched in May 2019.
With 31 locations in Bengaluru and 7 more in Chennai, AtherGrid was designed to provide a charging
infrastructure within 4 kilometres (km) of any commuter. Over the next five years, AE planned to set up a
new manufacturing facility and additional charging infrastructure in several more cities, with the goal of
selling 1 million smart e-scooters annually. The company also planned to begin accepting pre-orders in
other Indian cities, such as Chennai, Pune, Hyderabad, and Delhi, with a mid-term plan to further extend
its reach to 30 cities.8
In July 2019, the firm sold two models: the Ather 340 and the Ather 450. These products, which were priced
upward of ₹110,000,9 had been designed from scratch, were made in India, and had been customized to
Indian conditions and riding sensibilities. The firm’s flagship model, the Ather 450, came with a top speed
of 80 km per hour (kmph) and a range of up to 75 km. The top speed of a comparable petrol-powered
scooter was 85 kmph, with a mileage of 50 km per litre (kmpl) of petrol (see Exhibit 2 for more details).10
The Ather 450 also came with a parking assist function that allowed riders to reverse into tight parking
spots, a notoriously regular phenomenon in India. In short, it ensured a riding experience that was ideally
suited for city commuters. Both of the AE models were classified as smart e-scooters and were equipped
with a touch-screen, interactive dashboard, and an integrated app that provided on-board navigation, remote
diagnostics, and over-the-air updates.11 The dashboard came pre-loaded with the Ather app, which enabled
both push navigation from a smartphone and remote monitoring of the vehicle’s maintenance needs and
charging status. According to Mehta, within one year, the imported product parts of both models would
decrease from less than 50 per cent to less than 25 per cent.12 At present, consumers who wanted to purchase
either AE model had a four- to five-month waiting period, and Mehta asserted that consumer interest in escooters was increasing.13
AE did not follow a typical dealership format to distribute its products. Instead, AE products were displayed
at the company’s own thoughtfully designed experience centre, called AtherSpace, where AE product
specialists interacted directly with consumers to explain every detail of the vehicles to interested customers
and to arrange test rides. Purchases were made online via AE’s website, and charging stations were set up
at each new customer’s residence to provide overnight charging.14
To attract more customers, AE had started offering leasing options on its premium battery-powered scooter,
the Ather 450, wherein the customer made a down payment of ₹75,000 and was levied a monthly rental fee
of ₹2,500. Under this option, the company would refund the entire down payment of ₹75,000 at the end of
three years, in case the customer wanted to return the initially leased smart e-scooter. If the vehicle was
returned before the end of the term, the leaser had to pay a certain amount to the company, depending on
the time remaining for the lease to end. The customer also had the option of purchasing the leased vehicle.
To address consumer concerns about recharging EVs, AE had also earmarked ₹1.3 billion to set up 6,500
charging stations across India by 2023. To enhance consumers’ post-sales experiences, AE offered a
subscription plan, named Ather One, that provided doorstep pickup and servicing options, 24/7 roadside
assistance, and free charging at home and at all public AtherGrid stations, among other benefits. 15
In addition to vehicle sales, AE expected to gain new monetization streams from revenue from its charging stations,
vehicle leasing programs, and the sale of software upgrades. AE had submitted more than 51 patent applications,
11 of which were international, as well as 113 trademarks and 123 design registrations of their products.
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