**Title:** Ather’s Tarun Mehta on EV Manufacturing and Intellectual Property
**Meta Description:** Ather’s CEO Tarun Mehta emphasizes the importance of intellectual property over assembly in electric vehicle manufacturing.
**URL Slug:** ather-tarun-mehta-ev-manufacturing-intellectual-property
**Headline:** Ather’s Tarun Mehta Highlights the Shift from Manufacturing to Intellectual Property in EVs
In a recent interview, Tarun Mehta, CEO of Ather, shared insights on the evolving landscape of electric vehicle (EV) manufacturing. He emphasized that assembly and manufacturing, while important, are only the final steps in a much larger optimization process. “The real value lies in intellectual property and brand,” Mehta stated, asserting that Ather will prioritize investments in these areas.
Mehta’s perspective diverges from some industry peers, as he believes that the true financial success of an EV company hinges on its fundamental product architecture. This architecture is shaped by the level of engineering investment and attention to detail. The ongoing debate about in-house production has intensified, particularly following China’s restrictions on rare-earth magnets, essential for motor production. Both traditional and electric vehicle manufacturers have expressed concerns and are exploring alternative supply chains.
As tensions between India and China begin to ease, there is renewed optimism in India’s automotive sector, which is projected to be valued at $240 billion by 2024. The country’s EV market is also on the rise, with an estimated worth of $8.4 billion, according to Grand View Research.
Mehta pointed out that vertical integration would not have resolved the rare-earth supply issue. “Producing rare earth motors in-house would still require sourcing rare earth materials from China,” he explained. He noted that there are existing suppliers for ferrite motors, indicating that vertical integration is not necessary for utilizing these components.
In contrast, Bhavish Aggarwal, chairperson of Ola Electric, advocates for in-house production of all components, including ferrite motors and lithium-ion cells. Despite the existence of a supplier ecosystem, India has made limited progress in lithium-ion cell production, with only Ola Electric’s gigafactory currently operational. Mehta expressed skepticism about the financial viability of investing in cell production, citing the industry’s historically low margins. “Companies producing 300,000 to 400,000 electric scooters annually rarely achieve profitability in cell production,” he noted.
During Ola Electric’s annual event, Aggarwal asserted that domestically produced cells would lower procurement costs and ultimately benefit consumers.
In conclusion, as the EV industry continues to evolve, the focus on intellectual property and product architecture may prove to be more critical than traditional manufacturing methods. The future of electric vehicles in India will likely depend on how companies navigate these challenges and opportunities.
**FAQ:**
**Q: Why is intellectual property important in the EV industry?**
A: Intellectual property is crucial as it drives innovation and competitive advantage, allowing companies to differentiate their products and secure financial success beyond just manufacturing capabilities.
