Ather Energy, an Indian manufacturer of electric scooters, claimed that despite strong demand for its products, the company’s ability to turn a profit was being hampered by rising raw material costs and supply chain problems.
“I was hoping to break even later this year itself. I would add a few quarters to that now,” its Chief Executive and co-founder Tarun Mehta told Reuters.
As more people switch to greener transportation, demand for electric car manufacturers has increased significantly. However, their expansion has been hindered by a steep rise in commodity prices and serious supply chain disruptions.
Due to higher commodity prices, Ather has seen an increase in material costs , some of which have been passed on to customers, according to Mehta.
A lack of chips and difficulties obtaining lithium-ion cells for batteries, which were made worse by COVID-19 lockdowns in China and logistics disruptions, have also reduced the company’s manufacturing quantities, he continued.