Ather CEO Tarun Mehta Takes A Dig At Ola Electric: Says Discounts Messing Up Electric Scooter Market

In the fast-evolving world of electric scooters in India, a quiet storm is brewing. Tarun Mehta, co-founder and CEO of Ather Energy, has openly criticised the aggressive discounting strategies employed by competitors like Ola Electric. According to Mehta speaking to TheArc, such pricing tactics may be gaining short-term attention but are ultimately distorting the natural growth and sustainability of the electric two-wheeler industry.

Deep Discounts, Deeper Worries

Mehta’s comments come at a time when Ola Electric has consistently topped the sales charts, partly fuelled by heavy discounting and limited-period offers. While this approach has boosted monthly numbers, Mehta believes it comes at a cost.

He argues that continuous undercutting of prices disrupts the market’s ability to build reliable pricing benchmarks and long-term customer trust. For a product as critical as a personal mobility solution, price instability can make consumers hesitant or overly deal-driven, which he believes hurts the ecosystem.

Ather’s Premium-First Philosophy

Unlike many rivals, Ather Energy has stayed away from the sub-₹1 lakh segment, maintaining a premium positioning with its 450X and 450S models. Mehta said that competing in the mass-market price war would lead to a “bloodbath,” where profitability, innovation, and service standards would all suffer. By focusing on product quality, in-house technology, and long-term reliability, Ather aims to build lasting brand loyalty rather than chasing volume spikes.

This philosophy has translated into consistent upgrades across their scooter line-up—from software and performance improvements to expanded fast-charging infrastructure under the Ather Grid. The company also boasts one of the highest customer satisfaction scores in the electric two-wheeler space.

Impact of Subsidy Cuts and Market Maturity

Adding to the complexity of the market is the recent withdrawal of central government subsidies under the FAME II scheme. Mehta acknowledges that the sharp pullback in incentives has had a chilling effect on the industry. While Ather has managed to reduce its dependence on subsidies over time, the sudden nature of the policy change created an uneven playing field, giving discount-led players an edge in the interim.

He advocates a phased and predictable reduction in subsidies so that manufacturers can adapt their pricing strategies accordingly and consumers aren’t spooked by sudden price hikes. A stable regulatory and policy environment, Mehta says, is just as important as business innovation.

IPO Plans and Brand Integrity

As Ather gears up for a potential IPO, expected within the next 12-18 months, Mehta is focused on laying down strong financial and operational foundations. Unlike brands that inflate volumes through deep discounts and cashbacks, Ather is aiming to present a picture of sustainable growth built on solid fundamentals.

This also serves to reassure future investors that the company is not dependent on tactical, short-term levers to show traction. In fact, Mehta’s dig at Ola is not merely competitive banter—it signals a deeper debate about how EV players should build trust and scale in a nascent but fast-growing market.

Bigger Isn’t Always Better

While Ola Electric may be dominating the sales leaderboard, Mehta’s argument suggests that market share gained through discounting can be fickle. It risks creating a customer base that is not brand-loyal but deal-loyal—consistently switching between brands depending on who offers the next big discount. That’s not a stable base on which to build a long-term business.

Instead, Ather’s focus remains on customer experience, technological innovation, and a predictable product roadmap. The company’s recent initiatives—including over-the-air updates, expanded servicing centres, and improved ride quality—demonstrate that sustainable success in the electric mobility space isn’t just about cutting prices but creating value.

The Real Battle for the EV Market

The Indian electric scooter market is at a crucial juncture. The choices brands make today—whether to chase aggressive growth through pricing gimmicks or to invest in long-term brand equity—will shape consumer perception for years to come. Mehta’s remarks serve as a timely reminder that while discounts may win a few battles, only quality and consistency can win the war.