Ather Energy, Preparing for an IPO, Saw its Import Cost from China Rise to 28% in FY24
In 2023, the total cost of materials consumed through Chinese imports was approximately 10%, totalling ₹157.9 crores.
Ather Energy
Electric two-wheeler manufacturer Ather Energy saw its cost of imports from China rise by 28%, amounting to approximately ₹442 crore, in the financial year 2023-24. The company sourced the remaining 72% of its materials from the domestic market.
In FY23, the cost of materials imported from China was around 10%, totalling ₹157.9 crores. In its draft red herring prospectus filed on September 9, the company stated, "We sourced our lithium-ion cells, a critical component in our electric two-wheelers (E2Ws), from two international suppliers based in China and South Korea over the last three fiscal years." For FY 2024, the firm’s total cost of materials consumed amounted to ₹1,579 crore.
The Bengaluru-based electric vehicle manufacturer has announced plans to go public with an initial public offering (IPO). The IPO will feature a fresh issue of shares valued at ₹3,100 crore and an offer for sale of up to 2.2 crore shares by investors and promoters.
The filing follows the successful stock market listing of larger competitor Ola Electric a month earlier. Ather's key suppliers in the domestic market include Bharat FIH Limited, Zhengzhou BAK Battery Co Ltd, LG Energy Solutions Ltd, Mahle Electric Drives India Private Limited, Rockman Industries Limited, IPEC India Private Limited, Brembo Brake India Private Limited, Gates Unitta India Company Private Limited, Gabriel India Limited, and INDIC EMS Electronics Private Limited.
Indian companies rely heavily on global markets, including China, for battery cells. China dominates the global supply chain from mineral processing to cell component manufacturing and cell production, although it has less control over mineral extraction. Key reserves for essential EV components include lithium in Bolivia, Chile, Argentina, and Australia; cobalt in the Democratic Republic of Congo; copper in Peru, Chile, and Australia; and nickel in Indonesia, Brazil, Australia, and the Philippines.
Ola Electric, a major competitor, also experienced a significant rise in its import costs from China in FY24. According to its Red Herring Prospectus (RHP), imports from China accounted for 37% of the company’s total material costs in FY24, up from 19% the previous year. Dependence on imports from China and South Korea remains a key risk for EV manufacturers in India. While the government is working to reduce import reliance through initiatives such as Make in India, the Atmanirbhar Campaign, PMP, the PLI scheme, customs duty elimination, and enabling FDI, it will take time before OEMs achieve full localisation.
