The Ather brownout

After the investment by Hero Motors in Ather Energy what is very obvious is that there is a certain communication link that seems to have been cut… that they have managed to choke Tarun & Swapnil… their voices have almost been shut out… the way business was done seems to have changed somewhat…

There have been changes both inside and outside. Looks like production might not start even by mid 2018…

VC was such a bad idea… it was just as much a bad idea as Chetan selling Reva to Mahindra… What was the need for Ather to try to scale up so quickly? Making 100 bikes per year and doubling the figures each year was very much within the capacity of the original Ather team.

The mistake they did was that they never sold any of their product before going to a VC so they were always going to be at a disadvantage. Because without sales… it was Ather who had to chase the money instead of the VCs chasing them with their money.

They could have done bike sales easily had they gone for below 30kmph bikes since it doesnt require approvals. And in the Version 2 they could have increased to 100kmph bikes which will require approvals.

Lesson to learn: Search for a VC ONLY after selling 100 to 200 bikes. That’s how much computers Apple sold before bringing in capital for scaling up. Even then the Pepsico CEO kicked Steve out. Big money will always bring in big sharks to the swimming pool.

If Ather by themselves could make 10 bikes a months and sold them that would have been pretty awesome figures. Even India’s biggest SUV maker Mahindra is unable to match 10EV per month figures with E2O.

There was absolutely no reason to scale up too much too soon and there was no reason for their “vertical integration” in the very 1st version.

This doesn’t mean that Ather will not be able to build the bike or sell 10,000 bikes a month. What it means they no longer will have the control to bring in quick changes, to any model, which was possible 2 years ago.

It is always preferable to make and sell 1 bike a month on your own terms than selling a million on somebody else’s terms.

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