Hero MotoCorp to Invest ₹1,758 Crore to Increase Stake in Ather Energy

Hero MotoCorp announced on Thursday that it will invest up to ₹1,758 crore (approximately $184.01 million) to acquire additional shares in Ather Energy. The move will raise the traditional automaker's stake in the Bengaluru-based electric scooter maker to 32.8%.

According to the company, the shares will be purchased from an existing stakeholder, though the specific seller was not named in the announcement. Prior to this transaction, Hero MotoCorp already held a 29.88% stake in Ather Energy as of August 25, making it the company's largest shareholder.

This latest development follows closely on the heels of a separate preferential issue. Just days prior, Ather allotted convertible warrants worth ₹960 crore to Hero MotoCorp.

The continued investment comes amid intensifying competition within India's fast-growing electric two-wheeler market. Traditional automakers and dedicated electric vehicle startups are increasingly vying for market share as adoption rates rise across the country.

Ather Energy recently reported a sharply narrower first-quarter loss. The improved financial performance was supported by strong consumer demand for its family-focused Rizta scooters.

"Hero MotoCorp's decision to increase its stake in Ather Energy reflects a clear strategy to consolidate its position in the rapidly expanding electric two-wheeler segment. As competition intensifies between established automakers and EV startups in India, such strategic investments demonstrate long-term commitment to the sector. Ather's improving financial performance, driven by demand for products like the Rizta scooter, makes it an attractive asset for legacy players looking to secure market share in sustainable mobility." — Dr. Shishir Gupta, Founder & CEO, StartupLanes