Ather Energy's stock surged more than 12% on the Bombay Stock Exchange today, reaching INR 1,245, after the Indian government confirmed an extension of its flagship electric vehicle subsidy programme, the FAME II scheme. The move, announced late yesterday, extends the policy for an additional period, providing a much-needed boost to the country's EV sector.
Investors also cheered the company's announcement of record quarterly deliveries. Ather delivered 45,000 units in the April-to-June quarter, a 35% increase compared to the same period last year. The Bengaluru-based firm attributed the growth to strong demand for its 450X commuter scooter and the newly launched Rizta family scooter.
The broader Indian EV market has faced headwinds in recent months due to uncertainty over subsidy cuts. Today's policy clarity has sparked a rally across the sector, with peers like Ola Electric also gaining ground. Analysts at Jefferies said in a note that the extension 'removes a key overhang' for Indian EV manufacturers, allowing them to plan production and investment with greater confidence.
For UK investors, the rally underscores the growing appeal of emerging-market clean-energy stocks. While Ather Energy is not listed on the London Stock Exchange, several UK-focused investment trusts and exchange-traded funds (ETFs) with exposure to Indian equities have benefited from the sector's momentum. The FTSE 100 was broadly flat today, but the India-focused funds tracked by Morningstar have posted gains of 2-3% this week.
The surge also highlights the competitive dynamics in the global two-wheeler EV market, where Indian companies are vying for market share against Chinese rivals. Ather's strong delivery numbers suggest its premium strategy is resonating with consumers, even as price competition intensifies.