Indian electric scooter manufacturer Ather Energy reported a narrower first-quarter loss on Monday, supported by strong demand for its vehicles, while projecting only a brief disruption from China’s rare-earth magnet export restrictions.
The company said it expects a one-week supply gap in the second quarter due to the Chinese export ban, though it plans to mitigate the impact using existing inventory. Ather is also exploring the use of light rare earth magnets, which remain exempt from current restrictions.
China, which supplies approximately 90% of the global rare-earth magnet market, implemented the export ban in April, prompting automakers globally to consider alternative sources and materials.
Last week, other Indian carmakers including Mahindra and Hyundai India indicated minimal medium-term impact from the ban, citing their transition to alternative magnet technologies.
Ather, which produces the Rizta electric scooter and is backed by Hero MotoCorp, posted a loss of 1.78 billion rupees ($20.3 million) for the quarter ended June 30, compared to a loss of 1.83 billion rupees a year earlier. Sales nearly doubled to 46,078 units during the period.
The company’s revenue rose 78.8% year-on-year to 6.45 billion rupees, though higher material costs contributed to a 54.4% increase in overall expenses. Adjusted gross margin improved to 23% from 19% in the same period last year, helped by non-vehicle revenue streams such as warranty services, software, and branded accessories like the Halo smart helmet.
