Listed EV maker Ather Energy’s board has approved setting up a wholly owned subsidiary to distribute auto insurance policies.

The new entity will act as a corporate insurance agent, offering and facilitating insurance policies, subject to approvals from the Registrar of Companies and the Insurance Regulatory and Development Authority of India (IRDAI).

Ather said the move is aimed at diversifying its revenue streams and building recurring income by using its existing customer base.

The company also expects higher insurance attachment rates and a smoother experience for customers and retail partners through cross-selling and servicing.

Ather plans to invest up to INR 8 Cr initially in the subsidiary, with further investment depending on how the business scales.

Shares of Ather were trading 3.7% higher at INR 686.40 on the BSE at 14:07 IST.

(The story will be updated soon)

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