EV Makers Unlock New Revenue Via Software Packs

Electric two-wheeler companies are increasingly leveraging digital features to establish new revenue streams. Ather Energy, a Bengaluru-based firm, has become the first new-age electric two-wheeler maker to achieve operating profit before depreciation and amortization. This milestone was reached in the June quarter, driven by the growing adoption of its paid technology packs, which accounted for 14% of its total revenue.

Hero MotoCorp, Ather's largest shareholder, is also intensifying its focus on software-led earnings. The company plans to aggressively monetize technology features to reduce losses from its electric scooter business. Hero's connected tech pack, launched this year, offers real-time updates, smart features, and personalized services. While Hero's annual subscription costs ₹999, Ather's one-time payment for its tech stack ranges from ₹14,000 to ₹20,000, offering features like Google Maps and pothole alerts.

Companies like Bajaj Auto and TVS Motor also provide similar software-linked features, though they have not disclosed specific earnings boosts. Ola Electric Mobility offers its MoveOS technology pack. Globally, Tesla monetizes advanced software features through subscriptions. The success of these software monetization strategies, however, hinges on brand positioning and the dependability of the software offerings.