Ather Vitality, an electrical two-wheeler maker that competes with Ola Electrical, has confirmed plans to enter the auto insurance coverage distribution house by establishing a completely owned subsidiary that can function as a company agent.

The transfer is aimed toward making car possession extra seamless by providing auto insurance coverage insurance policies to Ather prospects in partnership with a number of insurers.

In response to an alternate submitting, the subsidiary is but to be included and would require approvals from the Registrar of Corporations (RoC) and the Insurance coverage Regulatory and Improvement Authority of India (IRDAI).

Ather plans an preliminary funding of Rs 8 crore within the new entity, with further capital to be infused because the enterprise scales.

The corporate stated the insurance coverage arm will deal with distributing auto insurance coverage merchandise tailor-made for Ather’s electrical two-wheelers.By bringing insurance coverage distribution in-house, Ather goals to simplify coverage buy and renewals, enhance insurance coverage connect charges, and work with companions to design EV-specific insurance coverage merchandise that higher replicate real-world utilization reasonably than adapting conventional frameworks.

“We have now all the time believed {that a} good possession expertise goes past the car itself. Insurance coverage is a essential a part of that journey at this time, and it’s an space the place the expertise may be made considerably easier and extra predictable for patrons,” stated Ravneet Singh Phokela, chief enterprise officer at Ather Vitality.

“By bringing insurance coverage distribution nearer to the Ather ecosystem, we will make it easier, extra clear, and higher aligned with how our prospects truly use their automobiles. Over time, this additionally offers us the power to work with companions to design auto insurance coverage merchandise that replicate actual EV utilization, reasonably than adapting legacy frameworks. It is a measured however deliberate step, centered on strengthening the possession expertise whereas constructing a functionality that enhances our core providing and scales with the enterprise.”

Ather’s transfer into insurance coverage is a part of a broader technique to construct an built-in ecosystem round its electrical scooters. The corporate’s choices already span automobiles, charging infrastructure, retail and repair networks, equipment, software program, and ecosystem merchandise such because the Eight70 guarantee programme.

The event comes at a time when Ather continues to navigate a aggressive electrical two-wheeler market. In response to Vahan information, the corporate retained its third place in November, though registrations declined 30% month-on-month to twenty,018 models from 28,405 models in October. Ather at the moment holds a 17.43% market share.

Financially, the corporate reported improved efficiency within the second quarter of FY26. Ather posted income of Rs 899 crore in Q2 FY26, up from Rs 583 crore in the identical quarter final 12 months, overtaking rival Ola Electrical throughout the interval. Web losses narrowed by 20% to Rs 157 crore in Q2 FY26 from Rs 197 crore in Q2 FY25.