Hero MotoCorp has revealed that sustainability and emerging mobility are a priority for the company
Hero MotoCorp is leaving no stone unturned to create a greater presence for itself in the electric vehicle (EV) segment in India. The world’s largest two-wheeler manufacturer is seeking broader stakes in the country’s electric mobility space. In line with its vision of “Be the Future of Mobility”, the company has announced new investments in Ather Energy.
The board of Hero MotoCorp has approved a new investment of up to Rs. 420 crore in the Bengaluru-based EV startup in one or more tranches. Prior to the proposed investment, Hero MotoCorp’s stake in Ather Energy was 34.8 percent. Ather Energy are the makers of one of the best selling electric scooters in India.
Hero MotoCorp Investments in Ather Energy
Following this new investment, the shareholding will increase and the exact shareholding will be determined upon completion of the capital increase round by Ather. This is the fifth time that Hero MotoCorp has invested in Ather. Hero MotoCorp first invested in Ather in 2016 when it became a strategic partner.
Earlier in July 2020, Hero MotoCorp invested Rs 84 crore to increase its stake in the EV startup. The company has also invested $12 million (Rs 89 crore) as part of the Series D round in Ather Energy.
Hero was one of the early investors in Ather Energy and has continued to expand his association over the years. The company is also exploring partnerships with Ather in several other areas, such as technology, charging infrastructure and sourcing.
Upcoming E-Scooter from Hero MotoCorp
While Hero has not officially ventured into the EV space, it has formed strategic alliances with third-party EV manufacturers such as Ather Energy and Gogoro. The company is gearing up to unveil its first electric car in March this year. The vehicle is being developed in its R&D setup – the Center of Innovation and Technology (CIT) in Jaipur and the Tech Center Germany (TGG) near Munich in Germany.
Hero MotoCorp’s upcoming electric scooter will be manufactured at the company’s manufacturing facility in Chittoor in the South Indian state of Andhra Pradesh. Hero MotoCorp is currently engaged in a legal battle with Hero Electric over the use of its ‘Hero’ brand name for electric two-wheelers.
In October 2021, Hero MotoCorp became the first company to adopt Ather Energy’s fast charging technology for its own upcoming electric scooter which will be launched in a few months. The startup, which came to Ather Energy, was founded in 2013 and is engaged in designing, manufacturing, manufacturing, selling, servicing, software development and software management related to electric cars and charging infrastructure.