Hero MotoCorp to invest more in Ather Energy, raise its stake in EV maker
India's largest two-wheeler manufacturer Hero MotoCorp has decided to raise its stake in EV startup Ather Energy, which produces electric scooters in the country. The company has decided to infuse another ₹420-crore investment in the Hosur-based electric vehicle manufacturer.
Hero MotoCorp made the announcement on Friday, saying the investment will be made in two phases. At the time of the announcement, Hero MotoCorp's share in Ather Energy stood at 34.8 per cent. It is set to go up after fresh investments. However, the exact share will only be known after completion of the capital raising round by Ather.
Currently, Ather Energy is one of the top electric two-wheeler manufacturers in India. It sells electric scooters 450X and 450 Plus in the country. It also plans to come up with new products to rival Ola Electric's S1 and S1 Pro in near future.
Swadesh Srivastava, Head of Hero MotoCorp's Emerging Mobility Business Unit, said, “In keeping with our vision 'Be the Future of Mobility', we are working on a variety of emerging mobility solutions. We were one of the early investors in Ather Energy and have continued to expand our association over the years. We are excited to see the growth of Ather Energy in recent years."
Hero MotoCorp is one of the first investors Ather Energy roped in before it entered the EV race in India. Since 2016, Hero MotoCorp has been backing the EV startup and now is exploring collaborations with Ather Energy in charging infrastructure, technology and sourcing.
Hero MotoCorp is gearing up to unveil its first electric vehicle in March this year. The vehicle is being developed at its R&D set-up – the Center of Innovation and Technology (CIT) in Jaipur and the Tech Center Germany (TGG) near Munich – and will be produced at the company's manufacturing facility at Chittoor in the southern Indian state of Andhra Pradesh.
Through its investments and partnerships with external partners like Ather Energy and Gogoro Inc, Hero MotoCorp is also working towards building the entire EV ecosystem – from products to technology, to sales, service, customer care, operations, and innovation, the company noted.